4 ms·

Economics is an imperfect science but the equation of exchange suggests printing money could just change the nominal value of debts/goods and redistribute them

Economics is an imperfect science but the equation of exchange suggests printing money could just change the nominal value of debts/goods and redistribute them rather than the total real value of debt/goods. That is you needn't create new real debt when printing money, you could just say be reducing the real value debt owed to current currency holders and distributing it to the backstopped depositors. I'm not saying we should be going to a commodity money, but if we were using a physical commodity as money (as in the commodity is physically in the coin, not notes representing the commodity) that were hard to mine more of, I'm not sure this kind of redistribution would be so practical.

deleted 4y ago
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taylodl 4y ago
I wasn't talking economic theory, I was talking about how U.S. dollars are created. A lot of people have the mistaken notion they're printed into existence because, well, some countries have handled their money that way. U.S. money is debted into existence. The Fed can't carry that debt on their balance sheet so they have to be able to sell it off. You can continue creating money this way without too much fear of inflation so long as you can find a buyer for the debt. That will be the case so long as people have faith in the credit of the U.S. - something which Republicans have repeatedly tried to destroy (even though it's unconstitutional to do so, but that's another matter). The simple answer is you can't crank up the printing press and print money. That's not how it works.
- steponlego 4y ago
  Yes it is, it's called monetization. Of course we then owe the money plus interest to a banking cartel. But it's all quite simple to understand.
  - taylodl 4y ago
    A banking cartel of Congress' own making and Congress has the authority to shut it down any time they choose. It's just the banking cartel has been doing a better job of running the nation's economic policy than Congress has - which should surprise no one. For example, I trust the "banksters" on these matters more than I trust MJT.
    - steponlego 4y ago
      Even Congresspeople want to live.

deleted 4y ago

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taylodl 4y ago

I wasn't talking economic theory, I was talking about how U.S. dollars are created. A lot of people have the mistaken notion they're printed into existence because, well, some countries have handled their money that way. U.S. money is debted into existence. The Fed can't carry that debt on their balance sheet so they have to be able to sell it off. You can continue creating money this way without too much fear of inflation so long as you can find a buyer for the debt. That will be the case so long as people have faith in the credit of the U.S. - something which Republicans have repeatedly tried to destroy (even though it's unconstitutional to do so, but that's another matter). The simple answer is you can't crank up the printing press and print money. That's not how it works.

steponlego 4y ago
Yes it is, it's called monetization. Of course we then owe the money plus interest to a banking cartel. But it's all quite simple to understand.
- taylodl 4y ago
  A banking cartel of Congress' own making and Congress has the authority to shut it down any time they choose. It's just the banking cartel has been doing a better job of running the nation's economic policy than Congress has - which should surprise no one. For example, I trust the "banksters" on these matters more than I trust MJT.
  - steponlego 4y ago
    Even Congresspeople want to live.