here's this here's the really simple things
we don't need to have unemployment
we don't need to be hysterical about our dept
this whole kabuki theater chis going on around sequestration also stuff is total
nonsense
and all of that is true through in large part because nixon took a sought the
gold standard in seventy one
now let's go back to y
that's true
why it's possible
that our government could actually make our society work in fact
that not only are
public deaths not a bad thing but they're actually a good thing because
they represent surpluses
in the private sector
this country at times in its history since george washington president eight
times we've shown a surplus
instead of a debt in each time i was followed by a depression or a severe
recession
why
double entry bookkeeping
the bigger the private
sector surplus
the larger the public sector dept
government dot equals
surplus in the private sector
plus or minus our trade balance
which is a whole
but but let me running
the me working with us a little more slowly
member i was very muggy move this this feeling of obligation is to this
you know how society is based out ligation the japanese sense of debo
earth curie
and there was a very specific type of care we serve a bird
our parents and como
but the sort of jury
was the book that i wrote so if money equals interior money equals obligation
if money was created by society so that
society can function
then what does society key of us
if we have an obligation if we have geary to society if we have an
obligation of society
what is the obligation of society has dots
according to jefferson in the declaration in the past was life liberty
and the pursuit of happiness
how can you have life liberty the pursuit of happiness if you don't have a
damn job
c franklin roosevelt really really hooked into this
back in the indian movies in them early forties
when he proposed to second bill of rights he said that there should be a
right
to a job
in fact in in thirty three when he started today p_a_ in the ccc in the the
new deal
he made what is one of the three primary tenants of modern monetary theory
a reality
and that is that if the private sector
cannot fonda full employment
if the private sector fails to provide everybody with a job that has the
obligation of government to do so
even if it has to go into debt to do it
particularly when he goes into debt to do it because as i mentioned before
has government debt goes op
private surpluses co
but but again that that sounds confusing so let me just make a really simple
the job of government should be to provide full employment
and we could do it
now
all we'd have to do is say
you know we're gonna create adrienne there we have two and a half trillion
dollars worth of infrastructure that needs to be repaired
for another trillion dollars we can week or maybe two or three we can build a
national high-speed rail system
for a fraction of a trillion dollars we could have uh... idbi broadband system
in this country that would be almost as good as that in south korea
or japan
so why not just
they have the government right
write a check and do it
all pat that means we're going to do that
we've always been in touch
we certainly really shy or we've always done and uh...
government debt is private savings it's private surplus
although one of the chinese law by our debt that they don't have to
but if they want their money back it until
but while we're on our money no week issue the money
we'd at the amount of money that the united states has does not depend on how
much gold is in fort knox were not on the gold standard
phone on this
but wait a minute if government just creates money out of thin air
then the currency will become worthless wanted when you have inflation
only if you go insane
well isn't that what happened in zimbabwe worry and uh... the primary
public
is that what happened during the carter years of inflation now
inflation is very rarely about
there being too much currency
has to do with you know maybe the value the christening i had
uh... i was in israel when they change the shackle
and i have some place around the house
specially priced storage someplace now they were live in a small boat uh... are
used to have the old israeli shekels you could turn it in for the new shackles
that that you had to
and a hundred
check on up became attention color
this is not does your offer me and he was ones are going to jurors
i hate when i used to carry a wallet
simple hundred dividend my wallet which and always at all
i've got it all russian
under dribbled out
has just a little thing
because it was worth about fifteen cents
and it was issued before they issued the new ruble notes
as i was in russia when that transition happened i was in russia you know in
fact i was there the week of the election when when boris yeltsin the
very first election a thousand years russian history
i've told a story of on here before bidding of the whole point is
those
changes in currency had nothing to do with the government spending too much of
it being too much debt
toward what about spain and greece i mean you know willard that serve
exploding
well yes they should be
there's a recession going on when there's a recession
tax collections go down because people and jobs in without paying taxes
and the automatic stabilizers kick and that is the government says pain
unemployment benefits uncovering the costs of things that people use to be a
whopping for themselves like food medical care
as a government spending goes up tax collection goes dot
you have a deficit
like we have right now in the united states now why is it that greece
and spain are having to pay
twenty twenty-five thirty percent
are close to it
templar o
money to finance their dead and we were able to sell our debt
for not that
for one percent
the reason why is because we will never run out of dollars we can shoot them
spain and greece gave up their ability to issue their own currency when they
join the euro
mississippi
is quietly in deficit
without transfers
of wealth from all the rest of us to mississippi every year for the last
probly fifty years hundred years who paneling ozawa
certainly since the new deal
s agis mississippi mississippi alabama florida west virginia idea you the the
basically the red states
without us giving them money
baby in deep doo-doo
baby like greece hispanic
but we do it because we're all one
well when they put together the year opinionated realize that didn't think of
that
this is why the e_u_'s going down in flames
this is why greece inspect because greases spent the same problem that
would happen if west virginia
or mississippi
tried to go out and borrow money
with their
and an arthur of government said
you cannot have
uh... you cannot borrow beyond a certain amount and we're not gonna give you any
tourist give them the money we don't want it to them
we feed their people
with food stamps we heal their people with medicare we don't ask them to pay
us back
you getting hearing this this is howard united states is different from the
european union
and why the your opinion is doomed to failure was doomed to collapse
and why in the united states if we were to say
you know we have basically an infinite supply of dollars now it's not genuinely
infinitives constrained by a number of things it's constrained by inflation's
complicity
constrained by dimmed by demand
there are a number of variables that that limit our ability to
to produce that
but we couldn't literally
saying we're printing work
we're gonna build that infrastructure
and if you want to you
i do we could just create the money say what you can't do that you can't just
great
actually you know we created twenty nine trillion dollars in the first couple
years last couple years abortion restoration first couple years the obama
administration
the fed created almost thirty trillion dollars
that's half the world g_d_p_
just to give to bank srs
we created out of thin air
decreed inflation now
so what's creates what creates inflation why did we have inflation
uh... during the uh... carter and reagan presidencies
because they will pressure
at the price of oil went up
they were so dependent on oil i mean literally our food
is where all our products everything is well
so prices went up
so what happened in zimbabwe same deal
in zimbabwe when when we've got a
took took down the white farmers basically
intern the land over to anybody who wanted as long as they were quite
farmers the people who took over the land in a lot of fun
and so there was a flow chart
he had surgery to repair a central commodity play have more demand