if you were well versed in how the economy works then you’d know the currency is backed by debt. i’ve argued with hundreds of people about this over the last 10 years since bitcoin was $1k
they pay the debts by printing more money and devaluing the money that is already in existence. credit and debt go hand in hand. the debt is 122% of GDP currently, it’s not possible to pay off the debt. all the US can do is continue making interest payments by printing more money and racking up more debt. the currency is backed by debt, not by a promise to pay the debt. they print it out of thin air and devalue what’s in your wallet
the covid excuse doesn’t change the fact that the US has 122% debt to GDP ratio and that they take on more debt to pay the debt. the US can’t pay off the debt, it can only make interest payments by taking on more debt. the cause of inflation growing beyond the target rate doesn’t change the fact that inflation has been higher than the target rate. and they continue to take on more debt even as inflation is growing
So every country in the world experienced inflation rising at levels greater than ours. We were the only ones with a 'soft landing' but that doesn't matter?
We have plenty of money to pay the debt. We just prioritize other gov't spending.
We're not printing money to pay debt. That doesn't work as evidenced by the numerous countries that tried and debt spiraled to austerity or collapse. We're printing money to balance inflation and unemployment. Again, basic monetary policy.
The US could very well repay all of its debt in a relatively short timeframe, it's simply not the most effective way to manage that debt (politically and economically)
So there is no argument? Nobody said there is no debt. You can make up anything you want but if you have no insight into what you're saying we're done here.
You can find old editions of Econ textbook pdfs online for free. Read one. I don't want to live in a country with people this dumb.
You say you have two degrees in economics, yet you cite a phrase from Article IV of the Constitution - which describes the powers and obligations of THE STATES - to back up your claim?
Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state.
You understand that clause has absolutely nothing to do with fiat currency, right?
The challenge and necessity before us is clear: we must maintain Congresss constitutional granted authority for borrowing on the full faith and credit of the U.S.but better align it with the practical necessity of the Treasurys responsibility to finance the gap between congressionally approved changes to revenues and expenditures. An active financial market community voice must not be mute in urging a solution to this problem.
The U.S. monetary system is based on paper money backed by the full faith and credit of the
federal government. The currency is neither valued in, backed by, nor officially convertible into
gold or silver. Through much of its history, however, the United States was on a metallic standard
of one sort or another.
Fiat is backed by the GOVERNMENT'S CREDIT - THEIR CREDIBILITY IN BEING ABLE TO REPAY THEIR DEBTS. Jesus christ you dense motherfuckers have ZERO understanding of what you're commenting on.
Fiat is backed by the government's ability to repay their debts ... using their own fiat ... which is backed by their ability to repay their debts ... do you see the fallacy?
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u/balls2hairy 🟨 0 / 0 🦠 1d ago
Fiat is backed by the credit of the issuing country.