The International Monetary Fund (IMF) warned Tuesday that America’s recent economic performance is partially the result of the country’s unsustainable fiscal practices, creating risks for the globa…
Every central bank system is a perpetual debt machine. It’s why the founding fathers specifically fought against them being established here. If you print the money then loan it to a government, how does the government pay that interest? Central bank loans the government $100 at 1% interest, even if they spend none of it, how do they pay the 1% when the issuer of the currency is also the loaner? Governments have to continue to accumulate debt in this system. They have always been a perpetual and compounding debt system.
I dont think they’ve had that kind of foresight tbh. The goal is to make lots of money and kick the can of being fiscally responsible down the road to the next administration.
If a global USD is devalued that far, its not just bad for America.
Don’t you understand? Every casual comment made in passing online needs to have been put through rigorous academic peer review and include citations on international economies and the mechanics of global currency exchanges, or the commenter must face complete social ridicule and ostracization. /s
I’ve always kinda felt that a Venezuelan/Zimbabwean type currency crash has always been the end goal when it comes to US debt.
Borrow more money than exists many times over.
Spend the money
Devalue the underlying currency of the debt to effectively zero
Fuck over millions upon millions of people
But hey, the spending was, in the end, all free!
Every central bank system is a perpetual debt machine. It’s why the founding fathers specifically fought against them being established here. If you print the money then loan it to a government, how does the government pay that interest? Central bank loans the government $100 at 1% interest, even if they spend none of it, how do they pay the 1% when the issuer of the currency is also the loaner? Governments have to continue to accumulate debt in this system. They have always been a perpetual and compounding debt system.
I dont think they’ve had that kind of foresight tbh. The goal is to make lots of money and kick the can of being fiscally responsible down the road to the next administration.
If a global USD is devalued that far, its not just bad for America.
I mean that’s not what happened in Venezuela at all but ok…
I mean, I was more looking for examples of currencies that had crashed to near zero than the specific driving forces behind the illustrations, but ok.
Yeah but you literally stated the reasons why…
This isn’t a conceptually difficult hypothetical to follow.
Don’t you understand? Every casual comment made in passing online needs to have been put through rigorous academic peer review and include citations on international economies and the mechanics of global currency exchanges, or the commenter must face complete social ridicule and ostracization. /s