• karashta
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    fedilink
    51 day ago

    The ultimate irony being that the “national debt” is simply the tally of all interest bearing and non interest bearing dollars created by the government that haven’t been taxed out of existence.

    There’s no scenario where we can’t pay debt denominated in our own currency, unless the government chooses not to pay.

    https://en.m.wikipedia.org/wiki/Sectoral_balances

    • There’s no scenario where we can’t pay debt denominated in our own currency, unless the government chooses not to pay.

      Well, yeah, but having an exponentially inflating debt leads to hyperinflation which makes the dollar worthless, and that has real-world consequences.

      I think if the dollar loses its value, society will jump to another alternative payment method, maybe crypto or sth else entirely, and that would be worse because it means you end up without state control. I.e., it is like having no state regulations anymore, and then who protects the citizens from corpo’s overreach? A lot of regulations are tied to things-being-measured-in-dollars. Like corporate taxes, or social security.