the money creator possesses their money it is not money, so it is by definition true that all government spending creates money. However as far as i know all the countries having credible monetary policies do have accounts and legal constraints on spending -- which of course can be abandoned instantly if necessary. The fact is the current system has been able to create constant inflation for decades on end. If i think of the future and what you guys can offer the world i just see you offer nothing at all that is not already known at places like the bank of England which is now managing to create 5% inflation per annum while having the lowest bond yields for a hundred years or something like that. The Bank of England is not creating 5% inflation. Get under the numbers and you'll see that government cuts and tax rises are causing RPI at 5%. With the rest caused by commodity demand in other parts of the world. Very low inflation is another neo-classical myth. That generally doesn't affect working people -- who would traditionally find their real purchasing power unaffected by inflation since they would demand, and get, higher nominal wages. (Not so at the moment with weak union power). Very low inflation helps those with a lot of financial assets maintain the value of those assets and the rent extractions they represent. There's not really any evidence that 2% inflation is economically any better than 7%. "Very low