could AI solve the national debt

[P F Tinmore]

No.

Where does the money for Quantitative Easing come from? It is borrowed.

 

[Captain Caveman]

Where does the money for Quantitative Easing come from? It is borrowed.

I'm UK, if the government borrows money, it sells bonds (also called gilts) to financial institutions, pension companies etc.. with an agreed level of interest. So the government pays the interest until they buy back the bonds.

Quantitative Easing is done by the Bank of England by creating electronic money. Again via bonds but the money is then supplied to the banks, and then into the market as loans etc..

Borrowing is using money that's already there in the system, QE is creating the money, hence why QE devalues the currency because there's more currency now in the system.

If society has 10 gold bars passing hands, they will hold a high value, no matter who borrows them. Put 100 extra gold bars into society, there's more bars so their value reduces.

^^ Simplified

 

[1srelluc]

Maybe, when V'ger shows up and all carbon based lifeforms contaminating the third planet are eliminated..

 

[Darkwind]

Not sure if you are just not very well informed or if this is wishful thinking to gain your beloved party a few more votes in Nov.

If you don't know what a fiat money is, that is your problem. I, however, do.

 

[Harpy Eagle]

If you don't know what a fiat money is, that is your problem. I, however, do.

When you go to the store, are you able to exchange your money for goods or services?

 

[Darkwind]

Inflation is not that prices have gone up; it is that the value of money has gone down.

Isn't Quantitative Easing and Borrowing the same thing?

Not really, but they appear to act the same way on the Economy.

As it stands right now, an American dollar is worth pennies on the dollar.

The value of the U.S. dollar has changed significantly since it was decoupled from the gold standard. Under the gold standard, the dollar was backed by a fixed amount of gold, providing stability in its value. For example, in 1934, the U.S. government set the price of gold at $35 per ounce (Investopedia) (Price in Gold).

As of now, the price of gold fluctuates based on market conditions and is currently around $1,940 per ounce (Gold Eagle) (US Gold Bureau). This reflects a substantial increase, illustrating how the purchasing power of the dollar has declined over time. Essentially, what cost $35 in gold terms in 1934 now costs nearly $1,940 in gold terms today, showing a significant devaluation of the dollar.

This change is partly due to the inherent inflation in a fiat currency system, where the dollar is not backed by a physical commodity like gold but by the trust in the government and the economy. Since the end of the gold standard in 1971, the U.S. dollar has experienced varying degrees of inflation, affecting its purchasing power. Over the decades, the value of the dollar has decreased, leading to higher prices for goods and services when compared to prices during the gold standard era (Investopedia) (Wikipedia).

In summary, the dollar's value today, compared to when it was based on gold, has diminished significantly, evidenced by the rise in gold prices and the general trend of inflation affecting the cost of living and prices of commodities over the past century.

This is just one of the many factors on why housing prices are unaffordable to the younger generations.

Thank your government for this.

It leads to the question: Why do they tax us when they can just print whatever amounts they want?

 

[Darkwind]

When you go to the store, are you able to exchange your money for goods or services?

There is a number of videos today that compare what people purchased just three years ago with today's prices.

They have more than doubles for the same products.

When you go to the store today, what you could by for a nickel 50 years ago now costs you over 100 dollars.

Do you honestly think that the dollar has any value at all? There are communities that have returned to barter as it has more value than the US dollar.

Then ask yourself why OPEC and other nations are removing themselves from the dollar as the world standard.

It is because it is worthless.

 

[Harpy Eagle]

There is a number of videos today that compare what people purchased just three years ago with today's prices.

They have more than doubles for the same products.

You should not believe everything you see on the internet.

When you go to the store today, what you could by for a nickel 50 years ago now costs you over 100 dollars.

Oh fucking bullshit. 50 years ago I was 10. 5 cents would have gotten me a gumball out of a machine. That same gumball does not now cost 100 bucks.

Do you honestly think that the dollar has any value at all?

The things you have described have happened to every currency on the planet. Some far worse

There are communities that have returned to barter as it has more value than the US dollar.

OH goody for them. Tell me how the barter system can be used to get me a new video card built in a factory in China?

Tell he how the barter system can get me a new car built in a factory in South Carolina?

Then ask yourself why OPEC and other nations are removing themselves from the dollar as the world standard.

It is because it is worthless.

Because using it as such gives the US too much power and control and the world is tired of our shit and us meddling in the affairs of most countries .

 

[Darkwind]

You should not believe everything you see on the internet.

Nor should you discount what you can see with your own eyes and match it up with what is being said. It is called evidence.

Oh fucking bullshit. 50 years ago I was 10. 5 cents would have gotten me a gumball out of a machine. That same gumball does not now cost 100 bucks.

The point being, what was 10.5 cents 50 years ago would not by you a stick of fucking gum today. In fact, it won't buy you much of anything.

The things you have described have happened to every currency on the planet. Some far worse

Yes, in failed countries. We are well on our way now. Inflation and the worth of a dollar is for all practical purposes, worthless, with the government printing more by the trillions. This isn't rocket science, but it does appear to be beyond you.

OH goody for them. Tell me how the barter system can be used to get me a new video card built in a factory in China?

Tell he how the barter system can get me a new car built in a factory in South Carolina?

Do you eat video cars, or cars? Your point is nothing more than a red-herring.

Because using it as such gives the US too much power and control and the world is tired of our shit and us meddling in the affairs of most countries .

And the fucking genius' that thought up that scheme were too fucking stupid to place some kind of value on the currency OTHER THAN the US Government, which no longer has full faith OR credit.

 

[Harpy Eagle]

The point being, what was 10.5 cents 50 years ago would not by you a stick of fucking gum today. In fact, it won't buy you much of anything.

You are correct, a lot has changed in those 50 years. The median wage was 11k.

Yes, in failed countries. We are well on our way now. Inflation and the worth of a dollar is for all practical purposes, worthless, with the government printing more by the trillions. This isn't rocket science, but it does appear to be beyond you.

There is not a country on the planet the uses the gold standard, every currency is a fiat currency.

Do you eat video cars, or cars? Your point is nothing more than a red-herring.

There is more to life than eating. But I am sure you can go find a commune somewhere that you can barter to your little hearts content. There is reason why the barter system was replaced with currency.

And the fucking genius' that thought up that scheme were too fucking stupid to place some kind of value on the currency OTHER THAN the US Government, which no longer has full faith OR credit.

Sure it does, more so than most currencies.


Your doom and gloom temper tantrum is fun to watch, but has no connection to reality .

 

[initforme]

Wages are not too high. Some say that. Simply not true.

 

[Captain Caveman]

P F Tinmore

Here's an example of printing money, imagine having a one hundred trillion dollar note -

 

[P F Tinmore]

P F Tinmore

Here's an example of printing money, imagine having a one hundred trillion dollar note -

Same thing if it is borrowed.