Warren Mosler is running for the Senate in Connecticut in the Independent Party primary. Unlike both the Democratic and Republican candidates Warren really understands economics and he’s really brilliant at explaining it to regular folks. Here’s a youtube on why we never have to worry about having enough money to repay the Chinese, or ant other nations that are holding US Dollars. The main point is that Government “borrowing” using debt instruments issued by the Government, is not like you and me borrowing money to fund something, because it carries no solvency risk for the Government.

Discussion on the trade deficit, and how it empowers Wall Street

The common thread in the three difs I’ve discussed in this part is that they’re all beliefs that counsel false economy and that, to the extent we follow them, lead to less national prosperity and wealth than we would otherwise enjoy. The sixth and seventh difs both lead to less economic activity and higher unemployment; and the fifth dif, in effect, counsels us to forgo opportunities to increase our national wealth through trading. The seventh dif, also, is like the first four in that it is another support for deficit hawkism, and a counsel against deficit spending, that is sorely needed in a time of slack demand and high unemployment. Taking all 7 of Mosler’s difs together, we see the outline of an ideology whose effect is to cripple American potential in both the immediate and the longer term. The 7 difs together constitute a 19th century economic ideology appropriate for a nation with a commodity monetary system, rather than a 21st century economic ideology appropriate for a nation with a fiat monetary system.