waveofthehand

3 ms·

1. 1.▲
   by waveofthehand 3y ago

   It is not "impossible" at all. The US cannot run out of its own currency. It controls the currency. It can run whatever deficits it wishes to.
2. 2.▲
   by waveofthehand 3y ago

   Austerity is a policy choice, it has nothing to do with the cost of borrowing. States that control their own currency, like the US, the UK, Japan etc. do not borrow money at all. The term is simply not applicable. During the COVID crisis de
3. 3.▲
   by waveofthehand 3y ago

   It isn't a glitch, it is simply how the modern monetary system works. States can spend as much as they would like to. The issue for a state is what is available to buy, not whether the money is there to buy it with. Austerity is theref
4. 4.▲
   by waveofthehand 3y ago

   This isn't true. The UK can spend as freely as the US. Being the reserve currency has nothing to do with it. Demand for the currency is unrelated to how much a sovereign state can spend.