7 ms·

Care to expand on that?

• rayiner 4y ago
  The M0 money supply increased from $350 billion to $900 billion from 1990 to 2008. During that time the federal debt increased from $3 trillion to $9 trillion. So the debt (due to the structural budget deficit) increased vastly faster than the portion of the money supply attributable to printing currency. Moreover, most money is not created by the government printing money, it's created by federal reserve purchases of debt or bank lending. Neither of those are reflected in the deficit. The prior poster is thus incorrect to say that the government "needs" to run a budget deficit "because that's where money comes form."