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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: sm1th who wrote (756478)	2/1/2022 11:28:58 PM
From: Follies	4 Recommendations Recommended By didjuneau pheilman_ Thehammer Tom Clarke Read Replies (1) \| Respond to of 793790

There are a group of people who think Bitcoin can break governments. Real (USD) fiat currency has only been around about 60 years. Before that time the government had to really borrow to run a deficit. Now however the Fed now stands by allowing the government to borrow and spend as much as it wants. People don’t want to save in a currency which is constantly losing value. If people discover they can save in a currency, Bitcoin which goes up in value it changes everything. Interesting that the IMF told El Salvador to get off Bitcoin. They don’t know how to stop it. Read The Bitcoin Standard and the Fiat Standard. Good books.

To: sm1th who wrote (756478)	2/2/2022 9:34:34 AM
From: skinowski	Respond to of 793790

Yes, they simply print. I think the most important function of the Fed is an unspoken one - to make sure the Treasury always has money available that they can “borrow”. Now, they’re discussing the super new idea - the Modern Monetary Theory. In two words, the government decides on priorities and authorizes the creation of all the funds they need. Taxes are no longer meant to pay for government's costs, but simply to mop up “excess liquidity”. For as long as the CPI is stable, they do not need to worry. But if it’s up, they would need to take steps to “mop up” excess liquidity. It’s clear that politicians will spend like crazy - and the mopping up part will end up ignored due to being unpopular. Imho, it’s a brainchild of academics who have too many clever ideas - and too little sense.