Paradigm wrote:A country with its own sovereign currency never has to default on its debts, unless those debts are owed in foreign currency. It can simply move money from the debit column to the credit column. That's the beauty of credit money. It then can use taxation to avoid any inflation this might otherwise cause.
Using a printing press to pay off your interest payments is a form of default since it lowers the value of the currency being printed which causes the lender to get back less purchasing power than he gave out originally.
Also taxation doesnt do jack shit against inflation unless ofc the government starts destroying the money that it collects in taxes but what government in human history has ever done that?
Paradigm wrote:The thing that makes the US different is, as I already explained, the fact that it is sovereign in its own currency. So when speaking of centralized power, I am not talking about US vs. Greece. I'm talking about US vs. EU. The US has much stronger political union than the EU, and therefore would be much more capable of getting its act together if Texas found itself in Greece's situation.
So in your world ''getting your act together'' = rewarding irresponsible behavior?
Paradigm wrote:The federal government can even take on the debts of the states, as was Alexander Hamilton's solution for the state debts after the American Revolution.
Yes reward states for spending more money than they have, then you will just encourage them to do it again, what a brilliant plan.
Paradigm wrote:See, I know that magic is about the only thing you can understand, but there's nothing magical about this at all. It's simply common sense. Maybe you'll magically gain some reading comprehension skills, but I doubt it.
The only one believing in magic here is you, you are the one who thinks you can print money into an economic system and not have it create inflation (as long as the government shuffles it around which magically makes this money disappear). This sort of thinking is about as logically sound as thinking you can pump air into a ballon forever without having it burst.