Stephanie Kelton
Governments that issue their own currency under a floating exchange rate cannot run out of money to meet obligations denominated in it, turning federal deficits into the non-government sector's net financial surplus.
Currency-issuing governments operate under fundamentally different rules than households because they must spend money into existence before anyone can pay taxes or buy government bonds.
A federal budget deficit is an accounting identity representing the exact dollar amount added to non-government sector balance sheets as a net financial surplus.
The real constraint on government spending is the economy's physical resource capacity and inflation rather than an arbitrary financial balance sheet.