The Gary Null Blog

An email was sent to me recently containing the following information. Quite illuminating! - Gary The public is aware that deficit spending is the government's ability to spend money that it does not have. The image projected is the government borrows from the public, or the Federal Reserve, and the money that can be spent is above and beyond the funds collected in the form of taxes and fees. It the borrowed amount came from the public as touted, there would be no inflation. The transfer of money would be the same as if taxes or fees had been collected, but the government would additionally be giving a certificate (maybe) and a promise to pay interest on the loan. There is no way that such an imagined borrowing from the public can cause inflation.