Government can never run out of dollars?

True or False?

Just like a household, government has to finance it's spending out of it's income or through borrowing?

The role of taxes is to provide finance for government spending?

The National Government borrows money from the private sector to finance the budget deficit?

By running budget surpluses the government takes pressures off interest rates because more funds are then available for private sector investment projects?

Persistent budget deficits will burden future generations with inflation and higher taxes?

Running budget surpluses now will help build up the funds necessary to cope with the aging population in the future?

All the above are false.

St. Louis Fed:
“As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e., unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational. Moreover, there will always be a market for U.S. government debt at home because the U.S. government has the only means of creating risk-free dollar-denominated assets..."

Government can never run out of dollars. It can never be forced to default. It can never be forced to miss a payment. It is never subject to the whims of "bond vigilantes".

Fascinating interview with Randall Wray and Michael Hudson.

http://michael-hudson.com/2012/09/modern-money-and-public-purpose/

http://www.youtube.com/watch?feature=player_embedded&v=0zEbo8PIPSc#!