[averagejoe]

Bit fed up of Stockman and his fiscal doom articles. He is wrong. The truth is he misunderstands how money is created, via debt creation by a sovereign government in a FIAT system. The facts on this are all set out on Bill Mitchell’s useful blog. What matters is not the debt created, but the real capacity of the economy to provide services and products. Where I differ from Bill is I can see the limits of the planet’s resources, will inevitably start to shrink the capacity of the economy in sde course. Of course Stockman would mistakenly blame this on excessive government borrowing, but he would be wrong.

[Author]

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