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Debt is money. So, if we pay off all the debt then we won't have any money other than (probably) physical notes but even then there won't be any debt for the ce
by rojeee 5y ago
Debt is money. So, if we pay off all the debt then we won't have any money other than (probably) physical notes but even then there won't be any debt for the central bank to collateralise the physical notes - physical notes are a central bank liability and therefore must be balanced with an asset (debt, usually).
Debt isn't inherently bad. However, if mis-managed or abused then both creditors and debtors get into trouble.
- Jensson 5y agoDo the US government pay interest to you on your dollar bills? If not I don't see how that is debt. Lots of countries has a currency without paying huge amounts of interest to support it.
- rojeee 5y agoThat was my point. Physical bills are not debt - everything else is! Update for clarification - initial response was a bit flippant and not very well considered... Technically phyisical bills ARE debt (they are a liability of the central bank, after all) but they don't _behave_ like debt because they yield 0%.