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In Denial: Our Side—or Theirs—Can't Face Facts

Money has been tangible and countable for centuries. It was made of gold or precious metal or it was an IOU from a trusted bank. Now money is according to law what the nation in charge says shall pay all debt when tendered. And that nation can create money enough to balance the supply in the market of goods and services in demand IF extra money is saved and not added to the demand side of the scale.

What this means is that saved money (and not only more debt) can finance national priorities IF supply can be maintained in the market.

Heretofore, supply was the enemy of price and profit. Nations had to restrict supply for trade based on scarcity. But today, Information Systems, using computers of unimagined power, have made the creation of managed money (protected by cost of living adjustment of all savings accounts) the art and science of the possible. An overwhelming majority of people do not yet believe this. They are in denial. And we are in denial of the fact that the voters are in denial.

People work hard for their money. But they cannot just plain save if inflation can eat their savings and they do nothing about it. So people are compelled to invest in ventures that depend on demand to match supply at prices higher than wages can afford. The unreformed system as it exists cannot create money enough to work in the interest of all the people who depend on it for jobs and purchasing power. Government has to invest. And it doesn't have to tax. Those are the facts. And few of us will face them,