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Lexington, over in "Credit & Debt", I recently posted a thread where I argue that it is not possible to pay down the debt much at all with tax revenues. Please read it and comment.

It is based on MMT {modern Money Theory}. MMT says that every time the US has run a surplus [all 14 times] this led to a Bank Panic, recession, or a depression. It seems to me that their argument is stronger when there is a negative Balance of Payments like the US has had for many years. Their argument is based on the "Sector Balances" definitions that all schools of economics agree with. [Definitions being hard to disagree with.] In this case the definition says that the sum of the surpluses or deficits of the 3 Sectors must be zero. The 3 Sectors being: 1 the public sector, 2 the private sector and 3 the foreign sector. So, if the foreign sector is in deficit, then if the Public Sector is in surplus then the Private Sector must be in deficit, meaning money is being sucked out of the Private sector. This sucking can't go on for long without a recession starting as people stop spending. What the surplus does is to move cash from the people to the bond holders which are banks and insurance comp, etc. This destroys dollars, just the opposite of the way a deficit creates dollars.

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