National Debt

[P F Tinmore]

The constitution gives congress the authority to create our own money. This is at no cost. There is no money to pay back and no interest to pay.

So then, why do we borrow money to be repaid with interest?

 

[Woodznutz]

The constitution gives congress the authority to create our own money. This is at no cost. There is no money to pay back and no interest to pay.

So then, why do we borrow money to be repaid with interest?

Interest is a transaction fee.

 

[TNHarley]

That would just devalue our currency more.

 

[TNHarley]

I just want to add, this was the great economist AOCs plan to help pay for her green new deal

 

[Woodznutz]

"Economics has always been a mystery to me." -Henry Kissinger

 

[BluesLegend]

Christ some people should not vote.

 

[g5000]

The constitution gives congress the authority to create our own money. This is at no cost. There is no money to pay back and no interest to pay.

So then, why do we borrow money to be repaid with interest?

What do you think our currency would be worth if Congress had printed $32 trillion?

This is exactly why we do not want their hands on the money printing press.

 

[g5000]

Hyperinflation in the Weimar Republic - Wikipedia

en.wikipedia.org

 

[LordBrownTrout]

Doesn't matter at this point and we're seeing the de-dollarization. Some type of digital currency is right around the corner waiting to be ushered in. The smoke and mirrors in kabuki theatre is exposed.

 

[Woodznutz]

What do you think our currency would be worth if Congress had printed $32 trillion?

This is exactly why we do not want their hands on the money printing press.

Money can be infused into the economy with incurring debt. However, at this time there is no legal mechanism for doing it. I can give my children money that they don't have to repay, but the government can't give the nation such money.

 

[Woodznutz]

Inflation eventually takes care of the extra money. Prices go up along with wages. It all balances out in time.

 

[LordBrownTrout]

Inflation eventually takes care of the extra money. Prices go up along with wages. It all balances out in time.

Not really because the fed continues to create bubble after bubble, trying to spray perfume on a rotting pig.

 

[johngaltshrugged]

You're talking about Modern Monetary Theory (MMT).
It's the current fad for the deep thinking neo-Keynesian economists that currently tell us their policies have nothing to do with massive inflation.
Basically, the thinking is since it is simply fiat money (or petrodollars since that was the main backing) backed by very little other than the full faith & credit of the US govt, there is no cost to continuous printing of money.
That's what we have seen since at least 2008 with the Quantitative Easing (QE) money printing & expansion of debt.
Even DT fell for this "voodoo economics" to steal a phrase from the elder Bush.

Milton Freedman gives a good analogy

And here he speaks basic economic facts that modern economists want to ignore

 

[Woodznutz]

Not really because the fed continues to create bubble after bubble, trying to spray perfume on a rotting pig.

Or a pig that is intent on continuously gorging itself.

 

[Woodznutz]

The government can deal with inflation and the debt easily, by using revenues to pay down debt.

 

[22lcidw]

The Federal Reserve is a private corporation that prints our money through the treasury department. They are middlemen. And they take a cut out of everything.

 

[Richard-H]

Monetary flow:

U.S. Government --> American People --> Wealthiest .01% --> China --> China nukes the U.S.

 

[Woodznutz]

You're talking about Modern Monetary Theory (MMT).
It's the current fad for the deep thinking neo-Keynesian economists that currently tell us their policies have nothing to do with massive inflation.
Basically, the thinking is since it is simply fiat money (or petrodollars since that was the main backing) backed by very little other than the full faith & credit of the US govt, there is no cost to continuous printing of money.
That's what we have seen since at least 2008 with the Quantitative Easing (QE) money printing & expansion of debt.
Even DT fell for this "voodoo economics" to steal a phrase from the elder Bush.

Milton Freedman gives a good analogy View attachment 779852

And here he speaks basic economic facts that modern economists want to ignore

View attachment 779853

The value of currency is backed by the productivity and social and political stability of the nation, not oil, gold, or anything else.

 

[P F Tinmore]

That would just devalue our currency more.

Flooding our economy with printed money or flooding our economy with borrowed money has the same result.

Raising the debt ceiling = printing more money.

Except if we borrow it we have to pay it back with interest. And we cannot pay it back because it is the working capital of our economy.

 

[johngaltshrugged]

The value of currency is backed by the productivity and social and political stability of the nation, not oil, gold, or anything else.

That's what I said- the full faith & credit of the US. Fiat money backed by nothing really, especially since the Saudi's have ended the petro dollar agreement.

Real money has always been backed by real goods until recently.
What we have now is a fiat dollar ponzi scheme that is falling apart because we have ruined trust around the world.