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Money creation a lie?
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Money creation a lie?
Topics:
Steve Keen considers the following as important:
This could be interesting, too:
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| money creation a lie? |
The 💵 Dollar is a legal unit of account having a fiscal/tax relation between the 🇺🇸 federal government as the issuer, and its users.
Demanding that 🇺🇸 federal 💸 taxes be paid only in 💵 Dollars, insures the validity of the 💵 Dollar as the means of exchange.
Unlike States and municipalities, only 🇺🇸 federal government created 💵 Dollars, not 🇺🇸 federal 💸 taxes, nor auctioned interest bearing 🏦 Treasury Securities, pays for entitlement/discretionary spending and interest on the debt.
The 🇺🇸 National Debt is the amount of interest bearing 🏦 Treasury Securities that the 🏦 Federal Reserve has exchanged for excess 💵 Dollars circulating in the economy. Essentially having transferred excess 🪙 change from checking to savings.
The 🇺🇸 National Deficit is when the total amount of 💵 Dollars created into the economy by the 🇺🇸 federal government, exceeds the total 🇺🇸 federal revenues 💸 taxed.
Eliminating excess concentrations of 💵 Dollars through 🇺🇸 federal capital gains, dividend, interest, corporate, estate and inheritance 💸 taxes are essential for restraining excess concentrations of private power.
Inflation is a devaluation of the 💵 Dollar throughout the economy due to a shortage of resources and/or productive capacity.
Hyperinflation is a catastrophic devaluation of the 💵 Dollar throughout the economy due to a collapse in resources and/or productive capacity.
Recessions are cyclical decelerations of the 💵 Dollars throughout the economy that in time cause corresponding declines in economic activity.
Stagflation is a devaluation of the 💵 Dollar compounded by a decline in economic activity throughout the economy due to the scarcity of an essential resource.
Deflation is a revaluation of the 💵 Dollar compounded by a decline in economic activity throughout the economy due to an escalation in excess inventory.
A Depression occurs when the 🇺🇸 federal government runs a surplus that 💸 taxes out the 💵 Dollars essential for the functioning of the economy, causing a collapse in economic activity and an unsustainable escalation in private debt.