- 22 Aug 2021 06:01
#15186735
The US has a "fully" fiat currency. This includes --- the US issues the dollar; it floats the dollar on the international currentcy market, and so, is not obbliged to intervene to support the dollar; and it has no debts in any other foreign currency.
1] Therefore the US can always pay the interest and the principal on all US bonds.
2] The damage to the world's economy and the US's economy would always be much worse if the US defaulted on its bonds; than if it just minted a $1T coin and gave it to the Fed. to top-up its account balance, so it can send out checks or pay the bonds that have come due.
3] It is the American rich (who currently CONTROL the US Gov.) who would suffer the most if the US defaulted on the bonds that the American rich themselves hold.
Therefore, the US "national debt" is no longer a debt at all.
When the US went off the gold standard all the US bonds became interest bearing assets of the American people, foreigners, US corps., incurance comp., and banks, etc.
This is because the US can, whenever it wants, just create dollars (out of thin air) to pay off the bonds or to pay the interest. And, the American rich will not block this, because they hold the bonds and would lose $billions$ or $trillions$ if the US defaulted.
All these statements are self-evident facts. Any MS economists that denys them based on an economic theory that uses proofs based on assuming things that are self-evidently false --- are gaslighting you.
I'm saying all this in a new thread, because I want the lurkers to see this claim in the thread title.
.
1] Therefore the US can always pay the interest and the principal on all US bonds.
2] The damage to the world's economy and the US's economy would always be much worse if the US defaulted on its bonds; than if it just minted a $1T coin and gave it to the Fed. to top-up its account balance, so it can send out checks or pay the bonds that have come due.
3] It is the American rich (who currently CONTROL the US Gov.) who would suffer the most if the US defaulted on the bonds that the American rich themselves hold.
Therefore, the US "national debt" is no longer a debt at all.
When the US went off the gold standard all the US bonds became interest bearing assets of the American people, foreigners, US corps., incurance comp., and banks, etc.
This is because the US can, whenever it wants, just create dollars (out of thin air) to pay off the bonds or to pay the interest. And, the American rich will not block this, because they hold the bonds and would lose $billions$ or $trillions$ if the US defaulted.
All these statements are self-evident facts. Any MS economists that denys them based on an economic theory that uses proofs based on assuming things that are self-evidently false --- are gaslighting you.
I'm saying all this in a new thread, because I want the lurkers to see this claim in the thread title.
.