The National Debt, or Federal Deficit, is not really Debt. It’s the Money Supply. It’s deceptive to call it Debt.
Reducing this so-called Debt really means reducing the Money Supply. Obviously, reducing the Money Supply is Bad for the Economy, because people have less money to buy goods and services. Thus businesses make fewer sales and some go out of business.
Countries and States that don’t have monetary sovereignty (because they’re secretly owned by some Central Bank or Dictatorial Government) can’t increase their own Money Supply, so their Economies are dependent on investment from monetarily sovereign governments or Central Banks (their “owners”). All peoples have the right to declare independence and institute monetary sovereignty. Without monetary sovereignty there is no independence.
A good website about Monetary Sovereignty is MythFighter.com. Following is a good article from the site, which critiques a Mises review of an MMT book (Mises followers favor fiscal austerity, meaning reducing National Debt to pay Bankers, which means reducing Money Supply and thus Economic Activity, so the rich get richer, the poor poorer. MMT has misconceptions too, such as claiming the need for taxation, but otherwise, it’s closer to the truth).
INFLATION
ARTICLE: The Mises review of Kelton’s book
https://mythfighter.com/2020/08/20/the-mises-review-of-keltons-book/
GRAPHS: Two helpful graphs from the article are these.
1) https://fred.stlouisfed.org/graph/fredgraph.png?g=uurK
1) This shows that Increasing National Debt has very little effect on Inflation.
2) https://fred.stlouisfed.org/graph/fredgraph.png?g=unKl
2) This shows that Shortages, such as Oil Shortages, are the cause of Inflation.
ARTICLE: Purpose of Federal Taxes
This article explains that Federal Taxes are a fraud. The Federal Government prints its own money, so it doesn’t need tax money to pay for anything and doesn’t use or keep any tax money received. So the purpose of such taxation is simply to reduce the wealth of taxpayers, who are mostly the Middle Class.
State governments don’t have monetary sovereignty, so they require funds from the public or others in order to function. I believe all States and Groups of people have the right to Declare Independence and institute Monetary Sovereignty.
The economy is strong when a monetarily sovereign government keeps the Money Supply large enough, doesn't cause major shortages, and doesn't abuse human rights. Am I right? Or did I leave something out? The government is certainly causing major shortages and is abusing human rights, so I would agree that the economy is not strong presently.
That review says:
"They have been saying the same things for more years than I have been alive (in other words, a long, long time). Their philosophy continues to ignore the reality that in the past 80 years the federal debt has grown an astounding 55,000% and we have not experienced the disasters Mises continually predicts.
On the contrary, our economy is the strongest it ever has been, or will be as soon as we find the vaccine or cure for COVID-19."
Maybe they're wrong - there is no shortage of ideological blindness amongst the Mises crowd. But "our economy is the strongest it ever has been" - seriously? This is the kind of thumb-in-the-air comment I expect from a political figure hanging onto some pointless metric like GDP or whatever, but not in any kind of serious analysis. By what measure exactly is this the "strongest" economy? The phrase "calm before the storm" springs to mind - all the capital in the western world is pointing in the wrong direction, pointing towards a future everyone imagines will happen but which won't. It's not strong, it's a house of cards held together by string and tape. To name one factor, for the last 80 years, energy has been pouring cheaply out of the ground - but ERORI is decreasing always. This essentially free energy has been propping up this system for decades, which would not necessarily conflict with the Mises point of view of things.