Report: Just Ten Percent of Global Fossil Fuel Subsidies Would Completely Pay For a Global “Green Transition”
Stephanie Kelton explaining what Ben Bernanke meant in 2009 when he said the Fed doesn’t “spend tax money” when it transfers money to banks, but simply changes numbers in a computer. “To lend to a bank, we simply use a computer to mark up the size of the account they have with the Fed.” Kelton: “It’s exactly like putting points on the screen at a baseball game,” and a scorekeeper can “never run out of points.”
I’m not a fan of the “how are you going to pay for it?” scam, since it’s obvious the government never pays for anything it really wants in the sense of raising new revenue. It just spends the money. For proof, just look at the Iraq War, or any recent war, or any Republican tax cut plan. (See the video above for a slightly longer explanation of why governments that control their own currency never have to tax to spend.)
The fact is, a government that issues its own currency and whose economy is not ravaged by inflation can always write checks to buy anything it wants — and the idea that it “pays for” what it wants by selling bonds is a fiction, since every bond sale is a trade of an asset for an asset, not a loan. The Treasury market also gives rich people something safe to invest in. Neither of these goals is related to financing government spending.
But for those who do fetishize “paying for it,” here’s one for the books.
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