Deficits Are Our Savings! -- MMT

Deficits are our savings!  This is the MMT view of our National Debt.

This is from 2011 but remains the basic MMT position written by Bill Mitchell http://modernmoney.wordpress.com/2011/04/18/deficits-are-our-saving/
http://bilbo.economicoutlook.net/blog/?p=10384

Government finances are not the same as household finances regarding debt.   This MMT view of public debt vs private debt is so counter-intuitive that the common public thinking is that government debt must be treated the way household debt is treated:  If there is too much debt, the debt burden becomes to great, we must pay down our debt to get it back to reasonable levels.  To do that we must apply austerity to our spending and shift expenditures from buying things (buy less) to paying down debt.

The banksters would cheer for the idea of paying down private debt (rather than default).  On the other hand, they are in the debt business and the greater the debt the more they make.  They make even more when they create debt and then shift the risk associated with the debt to someone else.

Reducing the total National Debt as well as Annual Deficit in spending is the popular political idea.  More popular with the Republicans, the party that favors Banksters and Wall Street the most.  Dems favor them just somewhat less.  They differ in the mix of adjusting taxes and spending to do it.

We are being blindly driven by ignorant devotion to the notion that we must reduce government debt.  We are being driven by fear of inflation.  Fear of anything has become the weapon of choice to manipulate our society for the benefit of whom?

Whom?  Just ask who has benefited so far and have they benefited enough at this point to say enough benefit in power and money is enough?

Deficits Are Our Savings.  Deficits Equal Savings.  They always equal savings to the penny.  I will accept this as a fact.  If it is a fact and we all accept it as a truth then the whole situation changes.

Annual deficits are equal to our annual savings.  Total National Debt is the accumulated National Savings since the founding of our nation.

The most recent presentation of this idea by Randy Wray:
http://neweconomicperspectives.org/2012/10/modern-money-and-public-purpose-2-governments-are-not-households.html

Bill Mitchell's conclusion:

"The point is that whatever the mainstream economists say the policy agendas they advocate cannot be justified in terms of the financial issues they hide behind – crowding out, inflation, sovereign insolvency etc.
Once you understand the way the monetary system operates their agendas become transparently ideological and intent on redistributing real output to the rich and way from the poor.
They might be clothed in the sophistry of the market and supported by mathematical models but when you distil the arguments down to their essentials you realise they just represent a crude and unsophisticated grab for wealth."

What is the end game objective of those that would defend and promote with all they have (providing there is a return on that investment) the idea that the annual government budget must be balanced (or even run a surplus, not a deficit) and the total National Debt must be reduced through austerity??????????????????????????????  Talking about the rich here, the 1% or near 1% sycophants, stooges, and paid enforcement thugs in politics and academia?

What is in it for them:  The general public can no longer afford to own things.  They must rent them from those that own the asset like a house, land, cars, etc.  Austerity sells the family china to pay down debt so that it must be rented back in order to set the table. 

When rents increase beyond the ability of people to buy back what they previously owned but sold to pay down debt it makes holding and retaining ownership of those things worth even more, far more than those that once upon a time own them can ever hope to own again by buying them back. 

They can only own them again by taking them back.

Austerity is being imposed on Europe to return the population to feudal status.

Austerity does not even have to be imposed upon the people of the USA.  They will vote for it when they vote Republican, somewhat less of it when they vote Democrat.

We have met the enemy and it is us.  People are so easy to fleece.  It is an elegant accomplishment to get them to go so willingly and eagerly to the fleecing.  Just like getting those that have so little to vote benefits to those that have so much.  Play on their hate, fears and ignorance.  Get them to vote against their own self interest.