Or, as proponents like to call it, “Modern Monetary Theory”.
Basically, this is how Occasional-Cortex expects to fund her Green Raw Deal, spending trillions of nonexistent dollars. Since proponents are usually pretty vague in their descriptions, it comes across as Zimbabwe-style hyperinflationary to sane people. But that link above finally explains why it isn’t.
Rather, it is essentially a description of how a modern credit economy actually works – how money is created and destroyed, by governments and by banks, and how financial markets function. Nor is MMT new: it is based on the work of John Maynard Keynes, whose A Treatise on Money pointed out back in 1930 that “modern States” have functioned this way for thousands of years.
From this description, certain straightforward facts flow. Governments create money by spending and extinguish it via taxation. It follows, therefore, that a large country, borrowing in its own currency, cannot be forced into default. That is why the US is not Greece, and cannot become Venezuela or Zimbabwe.
It is not hyperinflationary because the government will simply “destroy” the would-be excess money supply through taxation. Allow me to explain, through a simplified example, how that works.
1. The Fed cranks the printing presses all the way up to Ludicrous Speed.
2. The government then pays Contractor X to build “infrastructure;” say, a solar power farm.
3. Contractor X uses that money to buy materials and pay workers to build the boondoggle.
4. Government then “recovers” all that money by taxing it away from the contractor and workers, and “destroys” it. (Note that this cleverly ignores the fact that a very large chunk of that money actually left the country, beyond the government’s tax&destroy reach, going to purchase PVC panels from China, since the US only has a small part of the manufacturing capacity. Even if they also do a print&pay scheme to build PVC factories here, the money still leaves because we still have to buy the raw materials from elsewhere since the greenweenies decided we don’t need rare earth mining anymore.)
5. Contractor and workers then scratch their heads and wonder why they just did all that work for free: retroactively unpaid labor and materials.
Slavery and Theft, v2.0.
But at least it isn’t hyperinflationary, eh?
You now understand why @AOC et al are puzzled when we ask where the money is going to come from to fund their GRD, free healthcare for all, free college, and ponies. It comes from slavery and theft.