Update on Krugman Post

I am making a very quick post, as James Galbraith has responded to my last post on the Seeking Alpha version of the post. I have copied the response below:

On the matter of my beliefs. Krugman's quote from me was this:

"So long as U.S. banks are required to accept U.S. government checks — which is to say so long as the Republic exists — then the government can and does spend without borrowing, if it chooses to do so … Insolvency, bankruptcy, or even higher real interest rates are not among the actual risks to this system."

Read it again with the *very next sentence* included:

"So long as U.S. banks are required to accept U.S. government checks — which is to say so long as the Republic exists — then the government can and does spend without borrowing, if it chooses to do so … Insolvency, bankruptcy, or even higher real interest rates are not among the actual risks to this system. The actual risks in this system are (to a minor degree) inflation, and to a larger degree, depreciation of the dollar."

Does this help resolve what I "appear to believe."? I trust so. What I actually believe is now so thoroughly on the record, there really is no excuse for writing about it without getting it right.

Thank you. James Galbraith

I have, of course, copied this over as James Galbraith should be in a position to set the record straight on what his actual views are.