The author uses outdated premises as the foundation for his critique of Democratic and Republican policies. How different his criticism would be had he understood modern economics. His false premise is, the Federal Government faces insolvency if it does not raise revenue. Nothing could be further from the truth.

Since 1971 the U.S. has been monetarily sovereign, issuing a non-convertible, fiat currency with a flexible exchange rate and all of its debt owed in its own currency - the dollar.

That’s what happened when Nixon abandoned the international gold standard. America became the monopoly issuer of its own currency and could issue as much of it as it wanted constrained only by inflation, and the lack of a Congressional appropriation, not the lack of revenue.

The author is not alone in his unawareness of the above facts. Joining him are scores of academics, pundits, MSM editors and their casts of feature and technical, economic writers, 99.9% of elected officials and most American citizens.

A careful reading of the definition of monetary sovereignty would then force the author to take an entirely different tack in critiquing U.S. economic/fiscal/monetary policy decision makers.

Moreover, when the Congress appropriates deficit spending what it is doing, according to Accounting 101, is providing net financial assets to the private sector/non-public sector. The simple rule is that where ever there’s a deficit there’s a surplus. All of the deficit hawks are loath to admit that without deficit spending the private sector source for net financial assets dries up and the private sector goes into deficit, leading to low and eventually, no new investment, production, hiring, sales.

One need only analyse the history of deficits shown in a sectoral financial balances graph. http://goo.gl/CGmF6f

The indisputable fact is that the Federal government and none of its programs can ever, involuntarily, go broke or face insolvency. Congress must appropriate for the government to spend its fiat currency.

Because Congress is ignorant of its own role as the score keeper and master of the purse strings our nation will suffer unspeakable social and economic dysfunction. As long as Congress, wrongly, believes it must tax and borrow to spend America is destined for the bottom of ladder not the road to Camelot.

When Congress and the any Administration acknowledge the fact that tax policy only manages; aggregate demand, income distribution and market incentives and disincentives, then and only then will American have rational fiscal policy decisions. As for borrowing, the U.S. NEVER BORROWS. Treasury and Fed transactions simply manage the term structure of interest rates. When Treasury bonds (securities) are traded there is no accompanying loan agreement. Funds are transferred fro checking accounts to savings accounts, that is not borrowing.

All the funds to pay taxes and buy Treasury securities come from government spending. No government spending no threat of inflation, therefore, no need for tax payments or Treasury purchases.

Wake up America the rich are creaming you of your surpluses and you know you haven’t had a real pay increase in forty years.

With inflation below 2%, real unemployment at 23% and surplus capacity at 8% your Federal government should be deficit spending to achieve full employment.

But, because you, wrongly, believe the government can go broke you will wallow in your cognitive dissonance until you go broke. You can’t avoid it because, unlike the Federal government, you cannot create your own sovereign currency.