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William A. Finnegan's avatar

I've decided to block the illiterates.

Bottom line is this... what I've written is grounded in two theories of economics, one is called MMT - Modern Monetary Theory, the other is called HPM, High-powered Money theory.

The peculiar nature of how the government pays for things is complicated. Admittedly, I've simplified the hell out of it so that it's digestable.

But the basic premise about control, inflation, demand for currency, and the ability of the US government to issue currency, is how this works.

If you needed demonstration that ultimately it's about "trust," Trump tanking the economy last week and the US bond market going into the dumper should have been a lesson.

When it comes time for us to issue more debt, it's going to be considerably harder. The ability of the Republicans to push a tax cut now without it being inflationary is zero. The tariffs, the tax cut, and the lack of confidence in the U.S. economy, are all going to drive inflation through the roof.

That said, I assure you, the government will not run out of money... even with the fact that apparently tax compliance this year is expected to drop to an all time low.

I suppose that happens when you fire half the IRS, explicitly the tax compliance divisions. LOL!

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Mark Bohrer @LocalPoet's avatar

So much is in this one post! It would be worth splitting out the healthcare section into a separate post. Would you consider doing that? It debunks and demystifies so many false narratives about healthcare that are out there. Many that I believed, and as you clearly explain, are not valid. You do good work.

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