Why is it not good to use rules that apply to persons when thinking about how the Gov. should act? - Page 2 - Politics Forum.org | PoFo

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Everything from personal credit card debt to government borrowing debt.

Moderator: PoFo Economics & Capitalism Mods

#14921762
SolarCross wrote:
Governments are military corporations but that doesn't grant immunity to the economic consequences of profligacy. Even getting repossessed is possible..

How a Hedge Fund Repoed an Argentine Navy Ship

I wonder how many times governments have to fuck up their finances before certain dumb shits will lose the magical thinking.

You miss a key point that MMT makes.
Argentina borrowed dollars. It could not get enough dollars later to make the payments. So,its ship was seized.
But, the US only borrows dollars. If it borrowed euros and could not get euros to repay the debt then it would be the same as your example.
But, the US can just create dollars to repay any loan it needs to repay, because the US Gov. can create dollars out of thin air. In the GFC of 2008 over $27T were created and provided to the banks, etc. that were in trouble to shore them up so they would not fail. Yes, $27Trillion. And the sky did not fall down. If that was done in 2008 it can be done at any point in the future. And the sky would not fall down then either. Maybe a lot of inflation, yes. Collapse, not likely at all.

You-all just don't get the point for some reason. A massive creation of cash [$27T] has already been done and nothing bad happened. Why can't you see that this applies to all US Gov. debts also?

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Please note the reply #20 at the bottom of page 1.

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