The Government Deficit = Private Sector Saving

Warren Mosler discussing the relationship between the government budget deficit and the private sector savings. They're equal. Net financial assets in the non-government sector only increase when the government deficit spends. Central Bank operations (like quantitative easing) only shift assets from one form to another. See the whole video here:    • Fiscal Sustainability Conference 2010 (Par...   Like Deficit Owls on Facebook:   / deficitowls