The thread starter is trying in a really half assed way if I say so, to try present the views of Stephanie Kelton who wrote a book called the Deficit Myth.
Shelton's basic contention is that standard accounting principles are incorrect in stating it actually costs something when the government spends money.
Her theories are pretty much the ones of Bernie Saunders and those who see no true harm in raising deficits.
For brevity's sake:
The essence of her theory is he federal government shouldn’t try to manage its budget worrying about reducing the deficit. She does not buy into references that suggest the government needs to reduce the deficit and engage in fiscal restraint. .
She contends that the US Government can create unlimited amounts of money and so debt and deficits do not matter.
In Canada where I came from her policies we called SOCIAL CREDIT. We had political parties in British Columbia, Alberta and Quebec try engage in it, and they were a bloody disaster.
In fact and I think this is what the thread starter has tried to refer to and completely phacked up on is that it is true the central banks of our Western democracies follow her policy in the sense they print more money without concern for the deficit a to cover the expenditures. The fact they do this is creating a debt we can not pay back. You can go onto the internet of course and go to the calculator that shows you the interest rate running on the debt the US, Canada, other countries owe.
Its bloody scary. To simply say you can keep doing that and there will be no negative consequence is like a fat man who does not exercise, smokes, drinks. eats nothing but butter and bacon. Eventually something is going to happen. When and what I can not tell you but the economic markets as we know them are generating inflation at the moment and more and more of us are losing value in what our currencies spend to the point where the West may find itself redoing currencies and having bank collapses like third world countries and then money will cease to have any meaning which is why you see people now simply using credit cards, bit coin or thinking they can find other ways to get what they need.
It could very well be our economies collapse meaning we have to barter if this theory keeps being followed by our central banks,
In any event it is an extremely complex and no mainstream economist supports her theories even though our central banks which are as the thread starter said our true government and pretty much aare printing money to postpone debt.
Here is a classic rebuttal of her theories:
https://www.nationalreview.com/2020/06/what-the-deficit-myth-lacks/
I am not here to debate her theories. My sole purpose was to rebut over simplified nonsensical comments about economy.
Now to the person I have directed my comments at, I apologize if I sound rude. I genuinely do. I am simply a grump old bastard who does not mean to insult you personally just the concepts. I could have done a better job of distancing the comments to the words not you as a person. I actually took what you wrote seriously otherwise I would not spend so much time responding to you.
I just myself am what you would call a typical middle of the road tax payer. I understand why I pay taxes and need a government. I also do not like my government to waste money and spend money it has NOT taken in.
Like most people I believe we need economic regulations but how much is the question.
www.cnbc.com
