Why would that happen? There's no proof that printing money (while considering the boundaries of the real resources like available work force) automatically leads to hyperinflation.
sockenklaus
joined 1 year ago
I see what you mean, but this is not about having a strangle hold on the world or being the world's reserve currency. This is about having your own currency and collecting taxes in this currency. As long as a country collects taxes in its own currency there will be demand for that currency.
Okay, but even if the USA can't change the law regarding states bonds, it is virtually impossible that people stop buying US states bonds since the US Dollar is kinda like the most established currency in the world.
So your argument is completely theoretical.
Serious question? Money today is nothing more than a number in an account. When a country needs more of its own currency, it can increase it's account by that amount.
Then stop selling bonds and start investing directly (build schools, repair bridges, pay your employees, etc.).
Countries don't have to take the detour through state bonds because they can make money out of thin air. State bonds are a self-imposed and there's no law of nature that mandates using them.
They seemed to think that tax revenue in some way has to happen for spending to happen.
Noo!
But the federal government creates money ex nihilo.
Yes!
Money has to be created before it can be destroyed through taxation.
Yes!!
We do not rely on the money of the wealthy. What matters is actual, real resources and services we can provide.
Yes, yes and yes!! ❤️
Thanks for your concise explanation of MMT! I wouldn't be able to phrase it this well. ❤️
Public sector debt is private sector surplus.
Yes! This is the very essence of our monetary system that nobody seems to understand.
No, that is not true. That states sell bonds is a self-imposed rule.
As long as a state collects its taxes in its own currency there will be demand for that currency.
Yes! I totally appreciate the shot. The composition is awesome. But these lines make me dizzy. 😄
Funny, I am getting uncomfortable looking at the picture. It looks so unnatural. 😬
Don't get me wrong: You're 100 % entitled to your preferences and your definition of a hobby.
It was just unusual for me to equate a hobby with putting effort and perseverance into something. For me a hobby is something you simply do for your enjoyment in your free time on a more or less regular basis.
But hey: Definitions differ.🤷
Doctors still do this, at least in Germany. When you're a smoker and getting pregnant, your doctor will most likely not try to bully you into quitting, instead they inform you about the risks and recommend you to cut down the smoking to a minimum but they will also acknowledge that you will most likely not overcome your addiction while your body is already under a lot of stress.