I want to review the 4th comment on AlwaysLand, Greg's comment. I begin by putting the comment in my own words, to make clear what I understand Greg to say.
One thing I'm not sure your accounting for is the currency issuer. They still have the power to "fund" the savings desires of the private sector and keep aggregate demand high enough for employment not to fall.
In other words, the currency issuer -- the federal government -- can create enough money to satisfy both "the savings desires of the private sector" and enough "aggregate demand" to keep unemployment reasonably low.
In that video I asked you to watch with Stephanie Kelton, there was a second video with a Q&A session. Very poor audio for parts of it but one place you can hear Mosler very clearly and he is talking about inflation (not hyperinflation) and he says something interesting. That inflation is never a REAL problem. It is simply a situation that humans get uncomfortable with and we must remember that but there is never real economic hardship DUE TO inflation. People are getting richer and paying higher prices but they can meet all their financial obligations out of their incomes usually. I dont care if bread is 6$ loaf if I only have to work 5 minutes to earn that 6$. The real question is how much work am I having to do to pay my cost of living, and in most inflationary situations through history, that is not usually a problem according to Mosler.
Mosler says inflation doesn't create hardship, so it isn't really a problem.
I think we get waaaay to inflation scared and therefore always run deflation bias which kills us in times of large debt.
And Greg says that deflation (by contrast) really is a problem.
Next, I summarize my restatement of Greg's comment, and then respond.
Inflation doesn't create hardship, so it isn't really a problem. But deflation really is a problem. And since the federal government can create enough money to satisfy both our desire to save and our need to grow, that is what it should do.
In other words:
1. The government can print as much money as it wants; and
2. Inflation is an acceptable solution.
Wow. Inflation is not an acceptable solution.
Look: Fiat money has an advantage over gold-backed money, in that fiat gives us more flexibility. For example, my idea to "print money and use it to pay off private-sector debt" could not possibly be done if we were on a gold standard. Today, however, we have the flexibility that makes it possible.
Having a fiat monetary system gives us an advantage. So, our present monetary system better prepares us to deal with monetary problems than the old system. What that means is we should better be able to achieve the same goals.
It does not mean we should claim that inflation is okay. It means we should have better chances of avoiding inflation and other monetary problems, than anyone in history.