2 ms·
There is nothing wrong that needs to be fixed. Because the dollar is a fiat currency, and the national debt is denominated fully in a currency the government co
by devinhelton 11y ago
There is nothing wrong that needs to be fixed. Because the dollar is a fiat currency, and the national debt is denominated fully in a currency the government controls, the “debt” is not really debt. It is really equity, shares of stock in USG. A dollar is just a piece of paper backed by the United States Government. A US Treasury Bill (T-Bill) is just a piece of paper backed by USG. A T-Bill is simply a dollar with a not-valid date. A dollar is analogous to stock in a corporation (except that instead of providing a dividend, it has the feature of extinguishing tax debt). A treasury bill is therefore analogous to restricted stock, stock that cannot be sold until a future date.
In other words, the national debt in a fiat currency should really just be considered as part of the fully diluted money supply. There is no reason to worry about the absolute quantity, only the rate of growth relative to GDP. I wrote an extended explanation here: https://devinhelton.com/why-the-national-debt-is-non-problem https://devinhelton.com/why-the-national-debt-is-non-problem