In the news release announcing his bill to derail the platinum coin effort, Republican Representative Greg Walden says something really stupid: “My wife and I have owned and operated a small business since 1986. When it came time to pay the bills, we couldn’t just mint a coin to create more money out of thin air.
Monday, January 7, 2013
It's Just Made Up
One of the hardest things for many people to grasp about money and governments (and the relations between them) is that it really just is all made up: it's people keeping track of who owes what to whom. Nothing has intrinsic monetary value. It makes for a lot of mistakes in economic planning and fiscal policy. If the government is in debt, it just needs to be credible in saying that someday it will pay itself back and there will be no problems. That's really it.
Subscribe to:
Post Comments (Atom)
"If the government is in debt, it just needs to be credible in saying that someday it will pay itself back and there will be no problems. That's really it."
ReplyDelete(Question for clarification)Is this your claim:
A nation-states' financial policies are 'sustainable'(long-term) if their constituents have 'faith' that such is the case.