and print money right up until it can't. good to know.
ah, so you are willing to admit the USA can default on it's debts
and print money right up until it can't. good to know. Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 59 years. meep |
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Non sequitur.
The US government (via the Fed, etc.) is the only legal authority that can create dollars. As such, there is no conceivable circumstance where it cannot pay debts denominated in dollars. As such, it cannot default due to lack of dollars. On the other hand, any debt or other financial obligation taken on by the US government is (AFAIK) legally the same as any other. If one says that the US has to pay bonds on time, then it has to pay Social Security and salaries on time, too. Treasury Bills aren't special in that regard. We can't "selectively default" by paying off bonds but not other things. When there are periodic scares about the government shutting down because it doesn't have money, its not due to the US being unable to create or raise dollars. It's due to the budget rules and insane Teabaggers wanting to burn the federal government down. Greece is different because it cannot make its own currency. At the moment... But you knew all that. ;-) HTH. Cheers, Scott. |
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zimbabwe "used" to print their own dollars too. how did that work out?
Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 59 years. meep |
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You tell me how Zimbabwe applies to the US and we'll talk.
Hint (11 page .pdf): Zimbabwe’s economic crisis and subsequent hyperinflation were preceded by several years of economic decline and mounting public debt. Weakening began in 1999, coinciding with periods of drought that adversely affected the agriculturally dependent nation. External debt as a share of GDP increased to 119 percent in 2008 from 11 percent in 1980. Land reallocation in 2000 and 2001, which redistributed large agricultural tracts, depressed commercial farming output. Output fell 50 percent between 2000 and 2009, led by a decline in the country’s major foreign-exchange cash crop, tobacco, which slid 64 percent in 2008 from 2000 levels (Chart 3). Commercial production of maize, the national staple, dropped 76 percent during the same time (FAOSTAT Database 2011). Just like the USA!!11 Amirite? :-/ Cheers, Scott. |
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read the second half of the first sentence in your link
Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free American and do not reflect the opinions of any person or company that I have had professional relations with in the past 59 years. meep |
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I did. And?
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