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Government debt denominated in one's own currency is not really a serious issue because governments can print their own currency to pay it off. Yes this can res

Government debt denominated in one's own currency is not really a serious issue because governments can print their own currency to pay it off. Yes this can result in inflation, but the inflationary effects are vastly overstated. Most of the inflation happens at the point of spending. I recommend reading up on Modern Monetary Theory (MMT) http://neweconomicperspectives.org/2014/01/diagrams-dollars-modern-money-illustrated-part-1.html http://neweconomicperspectives.org/2014/01/diagrams-dollars-...

seibelj 8y ago
MMT says that printing money has no effect if you give it to certain people. I’ve yet to hear of a real-world example where a major economy doubles or triples their monetary supply with no negative effect, which is what MMT will have you believe (“don’t give it to the banks - give it to poor people in Idaho!”). If it sounds too good to be true then it is.
- stephenbez 8y ago
  The US M1 Money Supply has tripled since 2000 according to the St. Louis Fed: https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL There have not been issues with high inflation.
- AlexTWithBeard 8y ago
  The problem is that once the debt is repaid you have to provide something in exchange for that money. If it's good and services, fine, we can produce a lot of these. But if that's land and factories, the country will be owned by foreign investors pretty soon. Not sure if it's a good thing.
- notfromhere 8y ago
  MMT is economics for morons
  - mac01021 8y ago
    What is the less moronic theory that I should read up on instead?
- JDiculous 8y ago
  The Fed increased the monetary base by 5x during the Great Recession. Where's the hyperinflation?
rhacker 8y ago
Is it really not serious? Is there a possible chance that countries that we get our debt resolved from can just start buying US land and US businesses? Isn't there a reason more and more US companies are re-incorporating in the bahamas or other locations? The net effect of the last 20 years of economic policy will likely be felt... suddenly - when a decision is made by the new owner.

seibelj 8y ago

MMT says that printing money has no effect if you give it to certain people. I’ve yet to hear of a real-world example where a major economy doubles or triples their monetary supply with no negative effect, which is what MMT will have you believe (“don’t give it to the banks - give it to poor people in Idaho!”). If it sounds too good to be true then it is.

stephenbez 8y ago
The US M1 Money Supply has tripled since 2000 according to the St. Louis Fed: https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL There have not been issues with high inflation.
AlexTWithBeard 8y ago
The problem is that once the debt is repaid you have to provide something in exchange for that money. If it's good and services, fine, we can produce a lot of these. But if that's land and factories, the country will be owned by foreign investors pretty soon. Not sure if it's a good thing.
notfromhere 8y ago
MMT is economics for morons
- mac01021 8y ago
  What is the less moronic theory that I should read up on instead?
JDiculous 8y ago
The Fed increased the monetary base by 5x during the Great Recession. Where's the hyperinflation?

rhacker 8y ago

Is it really not serious? Is there a possible chance that countries that we get our debt resolved from can just start buying US land and US businesses? Isn't there a reason more and more US companies are re-incorporating in the bahamas or other locations? The net effect of the last 20 years of economic policy will likely be felt... suddenly - when a decision is made by the new owner.