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Banks borrow money at 0% interest and lend it to the government at 2% interest. That 2% has to come from somewhere (hint: us). Now suppose the government could
by sage_joch 17y ago
Banks borrow money at 0% interest and lend it to the government at 2% interest. That 2% has to come from somewhere (hint: us). Now suppose the government could also borrow at 0% interest (or print its own money, for that matter). Then taxes could be put to better use than lining the pockets of people who don't actually create any wealth.
- dantheman 17y agoAnd then money would quickly become worthless, as all fiat currencies have.