By Stephanie Kelton
So far, President Obama has shown little understanding of our domestic monetary system. His pledge to cut the deficit in half by the end of his first term, together with his assertion that the federal government is “out of money”, reveal deep flaws in his understanding of key issues related to the workings of government finance. Unless he masters the basics of double-entry bookkeeping — and fast — the nation’s job numbers will remain grim, social unrest will mount, and every one of his political challengers will adopt the same battle cry in 2012: “President Obama mishandled the economy — Vote for me if you want a better tomorrow.”
Almost none of them will have a better understanding of the issues than our current president, but one candidate will, and his name is Warren Mosler. I ran across this interview yesterday and thought it was worth sharing. He is one to watch.
So far, President Obama has shown little understanding of our domestic monetary system. His pledge to cut the deficit in half by the end of his first term, together with his assertion that the federal government is “out of money”, reveal deep flaws in his understanding of key issues related to the workings of government finance. Unless he masters the basics of double-entry bookkeeping — and fast — the nation’s job numbers will remain grim, social unrest will mount, and every one of his political challengers will adopt the same battle cry in 2012: “President Obama mishandled the economy — Vote for me if you want a better tomorrow.”
Almost none of them will have a better understanding of the issues than our current president, but one candidate will, and his name is Warren Mosler. I ran across this interview yesterday and thought it was worth sharing. He is one to watch.
