A bit odd for the back of a school busConcerned_Asuran t1_iya8976 wrote
Reply to comment by gumpythegreat in A bit odd for the back of a school bus by Type31
No man. He means the US government literally can't owe dollars to anyone. Cities, and States, sure, but not the Fed. It's impossible because the US has monetary sovereignty. Like England, Canada, Japan, etc.
Spain, France and Greece can go completely broke from owing money, for example, because they don't have monetary sovereignty.
Read The Deficit Myth by Stephanie Kelton. It will change your life.
bmoredoc t1_iyab7fp wrote
Stephanie Kelton is a proponent of a theory called MMT that most economists think is false.
Most economists would agree with the commenter above you. Yes you can repay sovereign debt by printing money, but this has consequences for interest rates and debt that can negatively affect the economy and necessitate, for example, large tax increases.
In short, there's no free lunch.
Concerned_Asuran t1_iye87v0 wrote
>Yes you can repay sovereign debt by printing money
No. You literally don't need to repay sovereign debt because you never borrowed any in the first place. We use "debt" simply because economists got lazy and didn't come up with a different word. But it is completely different from your household transactions.
whatdowedo2022 t1_iyaa8q3 wrote
What? We borrow our currency from the fed, which is an external organization that doesn’t answer to the US unless it chooses to. They’re very similar to the national bank, which jackson eliminated in his term in office, which caused the nation to be thrown into a recession bc of the subsequent response by the national bank. What uh, what’re you talking about?
Concerned_Asuran t1_iye7gga wrote
>We borrow our currency from the fed
The fed is the US Federal government though. Just cause it's a different building in Washington doesn't mean it's China.
Viewing a single comment thread. View all comments