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Does it matter? Government collects taxes and then spends it as it chooses.
by juhq 10y ago
Does it matter? Government collects taxes and then spends it as it chooses.
- Touche 10y agoYes, this is a new type of spending that hasn't existed before, and therefore taxes either have to increase or something else that is currently getting the 30k doesn't get it any more. You can't hand-wave away where this money comes from.
- tobltobs 10y agoTrumpists can: “This is the United States government. First of all, you never have to default because you print the money, I hate to tell you, OK?”
- croon 10y agoBefore people dismiss this, it is an actual Trump quote.
- pessimizer 10y agoIt is also completely true.
- croon 10y agoSure, that statement is technically correct, but it doesn't support the argument he was making.
- KirinDave 10y agoIt's not though. You don't "default" but your currency has to be well managed to a certain degree. The Dollar exists as it does because of its status as a reserve currency and because of how the Yuan is pinned relative to it. You could break it. It's not immune to the hyperinflation that's hit other currencies. Historically, the only other proposed option was the EU and much as been made about unsustainable financial policy there (many allege these issues are overblown to help discredit the notion of a strong Euro, but that's neither here nor there). But now we're starting to talk about creating to-order currencies with arbitrary properties, guaranteed supply limits and curiously popular ownership policies. While governments will never give up the power to mint their own currency, it's not unimaginable that in 10 years some some countries will seriously consider participating in a digital reserve.