Explaining Modern Money redo this from billy blog site
Modern Money Primer redo this from Billyblog site
Dear Congressman Moran,
Because Congress doesn't understand that the U.S. Government is monetarily sovereign and never dependent upon tax revenue per se to fund its operations, 10's of millions of senior Americans will suffer if you support funding reductions in Medicare Advantage.
The premise that we must reduce spending because of the deficit is on its face flawed, since Federal Government spending reductions reduce net financial assets in the private sector forcing higher private debt levels and higher public debt levels.
It is an indisputable fact of Constitutional law and monetary policy that our Federal government only needs an appropriation to fund any obligation denominated in dollars. The Federal Government does not use tax revenue or borrowing from any entity to fund its budget. All it needs is an appropriation, because the Federal government can never run out of dollars; it uses its computers to mark up checking accounts.
That's what it did to bailout Wall St. Think about it! Where did it get the $16 trillion to ladle to the banks? In a "60 Minute" interview with Scott Pelley, Bernanke said, "It wasn't tax dollars, we just use our computers to mark up checking accounts like your bank does when you deposit a check."
Therefore, any cut in Medicare or Social Security is not only pure pandering to those who would privatize both programs for the benefit of Wall St. not Main St., but it is also policy fraud since the fiscal premise is without merit given our monetary sovereignty; we issue our own currency, as much as is needed and can do so as long as we have an appropriation and remain sovereign.
There is an alternative. The Federal Government could issue debt free currency based on a 1996 law, 31 USC 5112(k) but, Congress, in dreaded fear of Wall St bond vigilantes, is not likely to use a solution that eliminates national, state and local level debt forever.
Please do all you can to assure that these totally unnecessary cuts do not take place.
P.S. I will post this to your Facebook and Twitter accounts as well as other social media sites to let interested citizens know that I care about this policy fraud and have made you aware of the facts.