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> When you are spending more money than the money coming into the system, which happens with almost all socialist systems You mean, like the USA?
by tomp 11y ago
> When you are spending more money than the money coming into the system, which happens with almost all socialist systems
You mean, like the USA?
- bgilroy26 11y agoEvery company that starts on credit is spending more money than the money coming into the system. It is rational in a stable society to borrow against future earnings in order to invest in the ventures that will generate those earnings. The United States can spend according to their projections for the value of US Treasury Bills. US Treasury Bills, in turn, are an investment in the future US economy as a whole. The connection between them is fuzzy and distant but at least in theory the government is run on tax-receipts even though T-Bills are doing so well they are self-sustaining. Venezuela was borrowing against their own future and their economy was tied up in energy. They are in a different situation.
- tomp 11y ago> US Treasury Bills, in turn, are an investment in the future US economy as a whole If only the debt/GDB ratio wasn't growing over the years...