Quote:
Originally Posted by Stymie13
That deficit spending won't be an option if/when we lose reserve currency status.
That's why I'm apt on making it as solvent as possible. Deficit spending cannot go on in perpitude.
Yes we could double the gdp out of thin air in Ww2 precisely because we had the only viable economy at the time.
That is no longer the case.
Other than funding we are about on the same page across the board from this and multiple other discussions.
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There is NO better debt investment today than USD based. Not even a close 2nd place suiter today.
Besides we can always create money without the debt, we just haven't the balls/knowledge to do it.
In 100 years will our national debt be higher than today?
Sure it will.
And that means we have more USD. And I can't imagine a better thing to spend it on than our HC.
Into perpetuity.
"Cathcart grinned. "He got the cash money the same way we
have gotten all cash money since Roosevelt put the gold back in
the ground-right off the printing presses. But he didn't have to
print much of it. The checks were issued at the Bank and the
merchant and a great many others had accounts at the Bank and
very little cash money changed hands. The bulk of it was mere
bookkeeping entries, made by the bank clerks. Holmes had
implemented what the bankers had known for centuries but
were barred by LaGuardia from doing-taking money out of an
inkwell. What's the matter, son? Still not satisfied?"
"Well, I don't know. Everything you have said seems okay,
but how about this? If you keep pouring money into a country
indefinitely, you are bound to get inflation, fixed prices or no
fixed prices."
"You don't pour it in. You add just enough to keep it running.
Each fiscal period the additional amount is the closest possible
approximation of the amount necessary to prevent a spread
between consumption and production, based on the value of the
nation's inventories."
"But why do you have to keep adding money all the time?"
"I said I would stay away from theory but I'll give you this
hint to chew over: the amount necessary to add each period is
theoretically equal to the amount of savings invested as capital in
the preceding period. And one more hint: Doesn't it take more
money to run the country's industry now than it did when
George Washington was President?"
Robert A. Heinlein
'For Us, The Living'
Written in 1934, not published until 2001.