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Debunking Government Debt Myths
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Steve Keen considers the following as important:
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Debunking Government Debt Myths
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
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| Debunking Government Debt Myths |
Which means it is borrowing from private banks. The bonds serve the same role as the contract, you sign, when borrowing from your bank: the bank exchanges your IOU against their IOUs, which are more commonly accepted.
The reason why it is not debt to the state, is because the state indebts its population by demanding a tax. (Demanding, not collecting!)
So the population owes to the state to accept those bonds and to sell something to the state for the bonds it gets. When it has got the bonds, it pays the demanded taxes with the bonds.
OK, this is the very short cut version. In reality the bonds had been replaced by money right at the very start and the money is replaced by the bonds at the very end. But the money does only serve as a placeholder for the bonds.
You must elaborate, as Thomas has pointed out, debt is still created. Even if it is all a big circle jerk, it often leaves the public holding the bag, and they have no control over it.
So the FED is not private? So why is the US taxpayer paying billions on interest alone EVERY month?? Its +- 13 trillion on interest alone since 1988 LOL.