Recent comments in /f/pics

bmoredoc t1_iyab7fp wrote

Reply to comment by Concerned_Asuran in A bit odd for the back of a school bus by Type31

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.

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Ok-disaster2022 t1_iyaatt2 wrote

Reply to comment by The_Countess in A bit odd for the back of a school bus by Type31

The UK government when they freed the slaves in the UK paid for them all with a massive loan. They didn't make the final payment on that debt until 1991.

It's also worth pointing out, government debt can be seen as a positive economic tool. Governments issue bonds that are highly secure but low yield investments.

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whatdowedo2022 t1_iyaa8q3 wrote

Reply to comment by Concerned_Asuran in A bit odd for the back of a school bus by Type31

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?

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Concerned_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.

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Concerned_Asuran t1_iya7fg8 wrote

Reply to comment by The_Countess in A bit odd for the back of a school bus by Type31

>Government debt isn't like household debt.

Correct.

>Government don't need to pay off debt (or write it off), they just need to service it, and wait for inflation and economic growth to make it basically irrelevant.

Incorrect.

>US world war 2 debt for example was never repaid, but at 285 billion, today, with the US economy reaching 23 trillion, it would represent just 1.2% of the economy.

Ambiguous.

The Deficit Myth by Stephanie Kelton should be required reading in middle and high school. Adults world-wide die of old age still believing in Santa Claus.

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