Today I read a very interesting comment made by UK Chancellor, George Osborne that UK has "run of out of money". You can read more here.
Consider the statements by the UK Chancellor that the UK has "run out of
money". Does anyone think that the UK financial leaders believe that
statement? If Germany declared war on the UK tomorrow would the UK
surrender because it had "run out of money" and could not "afford" to
increase expenditures to defend the nation?
So what is my point?
The point is that nations,
when faced with the need to make enormous, emergency expenditures,
rediscover through necessity the knowledge of how monetary operations
actually work even if they previously were captured by economic dogmas
that asserted the opposite.
That means that a national leader who is determined to be a patriotic, nationalist, fascist,
imperialist or what ever will discover in the course of creating a dramatic growth in
its military that it can fund the growth if it has a sovereign,
floating currency and if the nation's debt is denominated in its own
currency. The only constrained are the availability of real goods and services to buy.
And the last time I checked UK is still a monetarily sovereign nation, just like our country. And there are still plenty of real goods and services available for the UK government to procure, just like our country.
