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Because the government can only create so much money (printing isn't even necessary any more) before it causes hyperinflation. The fact that this hasn't happened yet, despite the wholesale monetization, shows how weak the economy really is.
If the economy was strong, all this cash dumping would drive up consumption, and the economy would hit a capacity wall and prices would fly upward (inflation.) So if the economy is the least be strong, the government needs to cover its spending with taxes to keep the economy from outstripping production/employment constraints.
A little over 3 hours long ... and I can't believe its still available. It's starts before the Founding of this country --- history is long.
England didn't like fiat currency (that that it could not tax) neither does the government today.
Because the government can only create so much money (printing isn't even necessary any more) before it causes hyperinflation. The fact that this hasn't happened yet, despite the wholesale monetization, shows how weak the economy really is.
If the economy was strong, all this cash dumping would drive up consumption, and the economy would hit a capacity wall and prices would fly upward (inflation.) So if the economy is the least be strong, the government needs to cover its spending with taxes to keep the economy from outstripping production/employment constraints.
It can cause hyper inflation and probably hasn't because of the foreign investing and trading of dollars. The global economy is so big it will take what ever dollars it can get. Sooner or later the printed money will have to paid for or backed up.
Last edited by anononcty; 01-02-2021 at 08:17 PM..
I'm not a big fan of income tax, but as far as currency, the idea is that it is supposed to be backed by something of worth. So... in this case, it is your labor.
Problem is, it's getting more and more to be that our currency (the dollar) is backed by nothing at all besides hand waving by the government. In my opinion, not very smart at all.
I'm not a big fan of income tax, but as far as currency, the idea is that it is supposed to be backed by something of worth. So... in this case, it is your labor.
Problem is, it's getting more and more to be that our currency (the dollar) is backed by nothing at all besides hand waving by the government. In my opinion, not very smart at all.
It was backed by Gold --- it's backed by Interest rates now.
According to the left’s favorite economist, Paul Krugman, the benighted “little people” must pay taxes so they will know which currency to use. Otherwise Joe and Bobby-Sue might get confused and pull Euros out of their pockets to buy a bag of potato chips at the 7-11.
You forgot to say Noble Peace Prize.
The looney also said the Iraqi should thanks the US for bombing the crap out of their country. His reason that the bombing stimulus their economy.
A brief note on "money" - Art 1, Sec 8, USCON
Congress has the power to "coin money" (stamp bullion) and to "borrow money." Congress no power to create money (bullion) nor can it give that power to a bank.
DOLLARDS 12 USC sec 411 defines the "dollar bill" as an obligation (IOU - debt) that is redeemable for real money (coin).
Since 1933, Congress repudiated that promise, thus making dollar bills into worthless bad checks under written by 330 million "human resources" via FICA.
(That is how debt-credit can be "legal tender" but not lawful money.)
Of course, once enough Americans withdraw from voluntary socialism (FICA), the dollar bill ceases to fungible. Billionaires become zero-aires overnight, and the government will probably resign en masse and migrate to countries that do not extradite to the USA.
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