The debt hawks are to economics as the creationists are to biology. Those, who do not understand Monetary Sovereignty, do not understand economics. If you understand the following, simple statement, you are ahead of most economists, politicians and media writers in America: Our government, being Monetarily Sovereign, has the unlimited ability to create the dollars to pay its bills.
Several days ago, I wrote to my Senator Mark Kirk, telling him the federal deficit and debt are not too high, and that a Monetarily Sovereign nation needs to run deficits in order to grow. This is the incredible response I received:
Dear Mr. Mitchell:
Thank you for contacting me regarding cutting spending and funding the federal government for the remainder of the year. I am greatly concerned about our national debt and believe that Congress needs to change course from spending money that we do not have. We will need shared sacrifice across government as we work to balance the budget and pay down debt.
So neither he nor his minions even bother to read letters. I didn’t contact him regarding “cutting spending and funding,” but rather not cutting spending and funding. And as far as “money we don’t have,” the federal government is Monetarily Sovereign. It has the ability to create unlimited money. Relative to Monetary Sovereignty, “money we don’t have” is nonsensical.
In recent years, our country has witnessed massive spending increases and budget deficits. This has led to an unprecedented amount of borrowing by the federal government. Since 2008, the national debt has increased by more than $4 trillion and currently stands at $14.2 trillion. We are borrowing $4 billion every day and this year we will pay $225 billion in interest on our debt.
If he understood Monetary Sovereignty, he would know federal borrowing is not like personal borrowing. The federal government doesn’t even need to borrow, and could pay off all its debts, tomorrow.
It is in this environment that Congress continues to consider funding for the federal government for the remainder of the year. To put our nation on a path of fiscal responsibility, Republicans and Democrats need to work together to pass a budget that includes serious anti-spending reforms that would make any future additions to our debt increasingly impossible.
In short, to assure a depression.
I have proposed 15 anti-spending reforms, which include a cap on spending, presidential line-item veto, federal hiring and pay freeze and permanent end to earmarks. I am also an original cosponsor of a Balanced Budget Amendment to the United States Constitution that would require Congress to pass balanced budgets and prohibit deficit spending or tax increases. Additionally, I have voluntarily reduced my Senate office budget by 15% to show that even Congress isn’t exempt from cutting back and living within its means.
Mathematically, a balanced budget assures a depression. See: Balanced Budget Idiocy
To ensure that future generations aren’t burdened with debt, we will need shared sacrifice across government and no one program should be singled out. Rest assured, I will continue to keep your thoughts in mind as I work to balance the budget and pay down debt.
Future generations will not pay federal debt. Taxpayers don’t pay for any federal spending. The federal government could eliminate all debt tomorrow, simply by crediting the bank account of T-security holders. The press of a computer button should do it.
Again, thank you for taking the time to contact me. To stay informed on important issues, I encourage you to visit my website at http://kirk.senate.gov and my Facebook page at http://www.facebook.com/SenatorKirk.
Yes, visit his site, and tell him how wrong he is. He really is frightening. He has no understanding of economics, yet proposes and votes on economics laws that will affect us all. Repeatedly, I have offered to teach him, but he isn’t interested. It’s Congressional hubris. I’m sorry to say I voted for this guy, but I won’t make that mistake again.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity, nor grow without money growth.