Armo Trader,

Let me get this straight. An undergraduate political science major at UCLA can tell the author of this article "your premise is built on flawed understandings of the modern monetary system"?

I suppose this is no surprise coming from someone who would use such flawed logic as to suggest the answer to job growth is an expansion of the public sector employment base. Learn that idea from the fabulous success that is the State of California?

Let me give you a quick lesson that you may have missed in the poly sci department of UCLA.

Increase in GDP= Increase in population+ Increase in productivity.

By all means, please elaborate on how higher taxes, never ending expansion of government, growth of public sector debt, or zero interest rate policy accomplishes any of the changes in the above mentioned equation.

What genius taught you a never ending money supply was a good thing? Did it work in Argentina? Did it work in Germany? How about Zimbabwe?

The Japanese Government Bond market won't ever break? Let me ask you a simple question....who in the world is going to want to own a yen denominated asset once the BOJ prints a never ending supply of money needed to support a faltering bond market?

You want to know the most chilling thing you wrote? "all public debt is private sector savings". This makes me want to vomit. What gives the central government the right to borrow against private sector savings to fund the spending habits of profilgate politicians? Can you imagine the positive change to productivity if those private sector savings were invested rather than lent to the central government. Debt is a headwind to economic growth, plain and simple.

Jot this down somewhere so you don't forget it. Growth comes from the private sector and cannot be engineered from a large central government. Individuals, corporations, municipalities, and federal governments cannot spend more than they take in. Not ever. Not in any case in history. It is not any different this time than the last. There are two pretty famous professors at Harvard and the University of Maryland by the name of Reinhart and Rogoff who you might want to look up.

Tres Knippa
Member, Chicago Mercantile Exchange
Owner, Kenai Capital Management