A nation cannot be bankrupted if it is in debt to its own central bank. Money is created in the modern world by creation of debt. The national debt = the base equity (our wealth) that the private sector uses. If you pay it off, you destroy that basis for the wealth of the private sector.
This is part of the paradox of thrift in the modern…
A nation cannot be bankrupted if it is in debt to its own central bank. Money is created in the modern world by creation of debt. The national debt = the base equity (our wealth) that the private sector uses. If you pay it off, you destroy that basis for the wealth of the private sector.
This is part of the paradox of thrift in the modern world. It is sometimes called debt deflation. You pay down the debt, but in the process, dollars are worth more, so the net percentage of debt relative to your ability to pay goes up. This is what "austerity" causes, over and over.
Congress knows this. They lie about it. Trump was the first president in history to speak honestly about the national debt. Do you remember?
A nation cannot be bankrupted if it is in debt to its own central bank. Money is created in the modern world by creation of debt. The national debt = the base equity (our wealth) that the private sector uses. If you pay it off, you destroy that basis for the wealth of the private sector.
This is part of the paradox of thrift in the modern world. It is sometimes called debt deflation. You pay down the debt, but in the process, dollars are worth more, so the net percentage of debt relative to your ability to pay goes up. This is what "austerity" causes, over and over.
Congress knows this. They lie about it. Trump was the first president in history to speak honestly about the national debt. Do you remember?
Ruml, B. (1946): Taxes for Revenue Are Obsolete. American Affairs, VIII(1): 35. https://cdn.mises.org/AA1946_VIII_1_2.pdf.