breaking news- us treasury/dollar rises!, page-20

Yep, no new cash, it already existed... Did you read above example lol?

And don't worry, it's not so much a theory as it is reality.

The reason people often get confused, I assume, is that

a) We are all confined to ordinary mean's of revenue/expenditure.

b) Europe is confusing people.

c) Fractional reserve banking further confuses thing's because that's how people think money is created. They learn that a loan creates a deposit, and this results in corresponding assets and liabilities.

d) point c confuses people, because on the government level the US. govt does not have a corresponding liabilty that needs to be paid back when it creates money.

e)Taxing before you can spend is logical, we are brought up on the idea. Unfortunately it's not true anymore (it used to be on the gold standard, and it is in Europe), as my example also showed was that taxes were never mentioned. In today's US (Australia etc.) taxes only serve to create demand for the currency, (They can also be used to remove money from the system).

Deficit's = More money in the system for the private sector.
Surplus = Less money in the system for the private sector.

Counter intuitive? Yes.
Correct? Absolutely.