https://theglobepost.com/2019/03/28/stephanie-kelton-mmt/ Everything You Thought You Knew About Economics May Be Wrong. Modern Monetary Theory (MMT) Professor Stephanie Kelton explains the policy choices open to sovereign fiat-currency- issuing governments, in the above link. ………………... https://moslereconomics.com/wp-content/powerpoints/7DIF.pdf In this link, Warren Mosler (former investment banker) explains the mechanics of public sector money creation, in this excerpt from his book: "The 7 Deadly Innocent Frauds of Economic Policy"). (page 16) "The Chairman of the Federal Reserve Bank is telling us in plain English that they give out money (spend and lend) simply by changing numbers in bank accounts. There is no such thing as having to “get” taxes (or borrow) to make a spreadsheet entry that we call “government spending.” Computer data doesn’t come from anywhere. Everyone knows that! Where else do we see this happen? Your team kicks a field goal and on the scoreboard, the score changes from, say, 7 points to 10 points. Does anyone wonder where the stadium got those three points? Of course not!...... We all know how data entry works, but somehow this has gotten turned upside down and backwards by our politicians, media, and, most all, the prominent mainstream economists. Just keep this in mind as a starting point: The federal government doesn’t ever “have” or “not have” any dollars. It’s just like the stadium, which doesn’t “have” or “not have” a hoard of points to give out. When it comes to the dollar, our government, working through its Federal agencies, the Federal Reserve Bank and the U.S. Treasury Department, is the score keeper. (And it also makes the rules!) You now have the operational answer to the question: “How are we going to pay for it?” And the answer is: the same way government pays for anything, it changes the numbers in our bank accounts. The federal government isn’t going to “run out of money,” as our President has mistakenly repeated. There is no such thing. ………... Currently, most of the population think government budgets are like their own household budgets, but nothing could be further from the truth. In fact, government issues the currency, whereas households (and other private sector players) are users of the currency. So when our friend Bluesguy says - speaking for most of the population - "the public sector can't fund itself, it has to do so through taxes" (or borrowing), he is entirely wrong. Because indeed classical economists have convinced us that wealth creation ONLY occurs in profit-seeking, private sector, "invisible hand" markets; whereas in truth a balanced economy - as opposed to a balanced budget ! - requires money creation in both sectors -public AND private - of the economy, if we are to avoid the "private affluence and public squalor" famously cited by JK Galbraith. Note: the constraint a nation faces is not money, but real resources, labour and productive capacity of the economy; so the issue resolves to avoidance of excess demand on available resources (to avoid inflation). Fortunately, by now MMT has the ear - if not the commitment - of central bankers the world over, so the coming crises will no doubt be dealt with more successfully than in the GFC, by central banks' monetary policies working in conjunction with governments' fiscal policies (including deficit spending), to avoid recession. ( ...and deficits don't worry Trump; at least Kelton is pleased about that; see her upcoming book: "The Deficit Myth" to be released soon).