• Sockenklaus@sh.itjust.works
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    6 months ago

    No, that is not true. That states sell bonds is a self-imposed rule.

    As long as a state collects its taxes in its own currency there will be demand for that currency.

      • Sockenklaus@sh.itjust.works
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        6 months ago

        Then stop selling bonds and start investing directly (build schools, repair bridges, pay your employees, etc.).

        Countries don’t have to take the detour through state bonds because they can make money out of thin air. State bonds are a self-imposed and there’s no law of nature that mandates using them.

          • Sockenklaus@sh.itjust.works
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            6 months ago

            Serious question? Money today is nothing more than a number in an account. When a country needs more of its own currency, it can increase it’s account by that amount.

                  • Sockenklaus@sh.itjust.works
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                    6 months ago

                    Why would that happen? There’s no proof that printing money (while considering the boundaries of the real resources like available work force) automatically leads to hyperinflation.

              • Sockenklaus@sh.itjust.works
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                6 months ago

                Okay, but even if the USA can’t change the law regarding states bonds, it is virtually impossible that people stop buying US states bonds since the US Dollar is kinda like the most established currency in the world.

                So your argument is completely theoretical.

                  • Sockenklaus@sh.itjust.works
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                    6 months ago

                    I see what you mean, but this is not about having a strangle hold on the world or being the world’s reserve currency. This is about having your own currency and collecting taxes in this currency. As long as a country collects taxes in its own currency there will be demand for that currency.