So long as U.S. banks are required to accept U.S. government checks — which is to say so long as the Republic exists — then the government can and does spend without borrowing, if it chooses to do so.
Why though don't you say right out, James K. Galbraith, that the government can and should issue debt-free/bond-free money directly into the economy by-passing the entire banking industry? People don't know what your statement above means. It's too coded. Why do it?
We don't have time. The grassroots Tea Partiers hardly speak cryptic economese. We aren't selling to Peter G. Peterson. His spirit is out to buy the Earth. Nevertheless, may he repent of his hyper-greed/selfishness. You have to win over the common people. How can we stop preaching to the New Deal economist choir?
We can and should have interest-free, tax-free, fiat United States Notes as the full legal tender of the nation to use to completely eliminate the National Debt and to pay for whatever the people want in the way of productive goods and services thereby also eliminating inflation and deflation while ushering in huge debt-free growth.
Money at this level would simply be a tracking/measuring device. In reality, the people could decide to provide goods and services without money, per se, provided they would be intelligent enough to do what is right — that is be righteous; but that's another article/ideology.
Why are the Federal Reserve bankers given free money that they release as debt and charge the people interest on their government's own money? It is the largest financial crime there has ever been.
The bankers are needless middlemen and women — leeches/parasites. It's an entire wasted, unnecessary layer — very stupid.
Those Federal Reserve bankers are not chosen by the people. They are chosen from within their closely held, private, elitist organizations. Their loyalties are to their employers, the bankers, and not to the people. Their loyalties are to the banking industry and not to the nation or nation-state or the people's government.
The health of the nation is not gauged by the health of the banking industry. As the banking industry goes, the nation need not follow.
The nation-state could do better without a banking sector. We need no institutionalized lenders charging the diabolical usury.