... in excess of taxation is based on the false model that the government is spending an externally produced commodity that has emerged as the numeraire. In the real world, sovereign governments do not face any finance constraint. The constraints faced by government policy are real resource constraints - natural resources, skilled labor, and productive equipment.

If there are the resources to make what is being bought with the currency, a sovereign government can simply issue the currency to buy it.

When the Eurozone countries surrendered their sovereignty to a common central bank built on neo-Hooverian lines, they set themselves up for this, which sooner or later has to be solved by reconstituting the ECB as a functional central bank. But neither the US, Japan, nor any of the other nations that have retained their sovereignty are under the same constraint.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.