mongombolo's - deep penetrations - wednesday, page-51

No stocktoe, you are wrong.

The US does NOT need China Japan etc. to lend it money, that is complete rubbish left over from the gold standard, it has not been applicable since the 1970's!

As I have said so many times and you obviously just ignore it, the US cannot be insolvent, the buyers of treasuries only do so because they would rather earn a few % then 0% on cash. It Doesn't matter if no body buys the bonds, turns out though even in the face armageddon auctions are almost always oversubscribed by 2-3x.

Yes it does have a knock on effect - its called increased aggregate demand. Now, does America need increased or decreased aggregate demand atm?

And again, no, revenue is not required, tax serves two functions- 1)Creates demand for the currency giving the ability for government to buy private sector productivity, 2)Regulate demand in the economy, tax more to cool it down, tax less to fire it up.

In a developed world nation with a floating exchange sovereign currency, there is no need for unemployment, no need for homelessness and no need for your nations resources to sit idle, you can argue out of your Phd economics textbook as much as you like, the vast majority of your neoclassical theories and models are moot.