31–40 of 42 posts
Here's your reminder that this is of course a bunch of alarmist nonsense, because as an issuer of currency the United States is incapable of becoming "insolvent." The authors are from an libertarian extremist think tank that pushes for a balanced budget amendment. If these people got their way, we would immediately solve the problem of people arguing about this on the internet since none of us would be able to afford…
Not a nice timing by the treasury to post this at the same time that many companies fire employees, war is going on, and fuel is running out. Everything is piling up it seems
The good news is that a currency issuer cannot become insolvent. This is literally just semantic libertarian scare propaganda. I strongly urge you to watch Stephanie Kelton's interview on The Daily Show a few years back to calm your mind a bit. https://www.youtube.com/watch?v=1JpZZcD8C4M Meanwhile, let's step back a bit... if we pretend that the US is insolvent - a repo man is going to come take it away with a big tr…
Earlier quoted context omitted.
But bonds and the Dollar could become nearly worthless
It didn’t, the last 2-3 times that trillions were printed to sort that moment emergency (thinking in 2008 and 2020, but could be more) and there wasn’t a sudden drop of value then.
Then 2020 happened, and they printed too much, and we've had inflation since then.
NB. This article could have been written under any recent administration (and no doubt was published in different forms). I don't mean it's politically motivated or that the current admin shouldn't be criticized; the authors have legitimate economic views and concerns that follow - but the title is clickbait and shouldn't be used to infer something new is happening.
The US can't go insolvent. The fed can could buy the entire debt out tomorrow out of newly created money. Sovereign debt in a country with such central bank is little more than future tax or inflation, but solvency is guaranteed.
The US can't go insolvent. The fed can could buy the entire debt out tomorrow out of newly created money. Sovereign debt in a country with such central bank is little more than future tax or inflation, but solvency is guaranteed.
All money is a human construct, exactly like the easter bunny, there is a whole set of arbitrary "rules" and conditions required to get chocolate, basicly everywhere, but in the one situation you have to be small and credulous, or put on agood act(usefull later in life) to get chocolate, and in the other the construct has become non optional and will be enforced on you as soon as you are no longer a credulous believe…
Earlier quoted context omitted.
The good news is that a currency issuer cannot become insolvent. This is literally just semantic libertarian scare propaganda. I strongly urge you to watch Stephanie Kelton's interview on The Daily Show a few years back to calm your mind a bit. https://www.youtube.com/watch?v=1JpZZcD8C4M Meanwhile, let's step back a bit... if we pretend that the US is insolvent - a repo man is going to come take it away with a big tr…
When other countries historically went insolvent they too pretended it meant nothing.
Earlier quoted context omitted.
But bonds and the Dollar could become nearly worthless
It didn’t, the last 2-3 times that trillions were printed to sort that moment emergency (thinking in 2008 and 2020, but could be more) and there wasn’t a sudden drop of value then.
Now with the current administration it would be different.