This too is hopelessly wrong. Just how do you think new base, i.e., Minsky's "outside money," gets into the economy? Hint: The correct answer is not, "It's dropped from helicopters."
Debt can inflate away if it grows slower than inflation. When has that ever happened in this country in modern times? And I mean less than real inflation, not Fed fantasy world inflation.
It's bound to cheer you to know that even the great Keynes, the universally esteemed inventor of Macro-Economics, was imperfect... Keynes recognized the absurdity of a gold standard for a modern economy, and he realized that governments should spend in deficit during recessions. But he also advocated that in boom times governments should run surpluses and pay down the "debts" acquired during recessions. Keynes apparently did not realize that nations that had " deep sovereignty" over both the money and the debt they issued, did not have real "debt" in the sense of the generally understood meaning of the word "debt." Instead, their "debt" liability would be better expressed as both a practical and social obligation to return to their "creditors" net buying power greater then the buying power they had "borrowed". Now we know that so long as capacity for increased productivity is present, a nation that has "borrowed" in recession does not need to generate surpluses in boom times. Running surpluses in boom times could hold back productivity and opportunity. Surpluses, which remove money from the economy, may be useful when an economy is overheated, i.e., it has too much money relative to the maximum practical rate at which productivity and economic opportunity can advance and, in particular, relative to the desired level of private savings and investment.
I don't do social media. One of my many failings. I compensate by knowing that deficits are how we get additional "outside" or "base" money into the economy. And although I admit to not having kept up to date on "acronyms," on a good day I can still spell the word. It's struggle enough for me to keep up to date on money theory.
Bullshit. Not doing social media is not a failing, but a strength. And I am not up to date on the latest acronyms either, but I am surprised by how many of the younger folks who do not know even the simplest of older acronyms, like AFK and BAK. Generational shift happening right before our eyes.
Gubmint shutdown if debt ceiling limit is not raised. Which all that means basically is that you wouldn't be able to go see the Buffalo in Yellowstone .... or Yogi either.