No need to spend responsibly with permission. Forget the debt ceiling. The US Treasury be like, “What if we just mint a trillion dollar shit coin to pay our debts?”
That shit coin being the USD of course. What a corrupt system.
Read the article below if you’re interested. This debate comes around every now and again. More financial gymnastics at play with debt ceiling conversations. The discussion centers on the US Treasury minting a trillion dollar coin out of thin air to cover the cost of debt and sending that coin over to the Fed to accept. Really this luxury is only given to countries that issue debt in their own fiat currency. The system is rigged to favor the US. Eventually there will be a point where too much debt and too much magic money maneuvers become a problem.
Unfortunately, it’s pretty rare that macro economists actually study how much national debt is too much. There’s a dearth of literature on the topic. No one quite knows where the proverbial edge of the cliff is.
Insert dog meme with room on fire, “this is fine.” Read up below.
Let’s step back and look at what’s going on.
The US Dollar is a fiat currency. We use a fractional reserve system.
The US Dollar is not backed by anything. Within the context of money, “backed by” means the bearer of a bank note can take that note to the bank and exchange it for the gold (or silver) which “backs” that note. For example, the USD is not “backed by” the military *because* you cannot take your dollar bills to the bank and exchange them for bags/boxes full of “military”. Same for “full faith” or any other bullshit the propaganda might have put into your head. **The USD is not backed by anything.**
Every US Dollar sprang into existence from thin air as a result of debt being created. New dollars are created when banks make loans. Dollars are destroyed when loans are repaid or written off.
There are Federal Reserve notes floating around… “dollar bills”. Still, about 95% of all US Dollars only exist as digits on hard drives within the banking system.
Here’s **something important to keep in mind**: Every dollar is based upon a loan, and those loans have interest. **There is never enough money in the system to repay all the debt AND interest.**
This means that the supply of dollars must always be increasing. If the central bank shuts down their “printers”, the whole system will collapse.
The biggest source of new debt: The Federal Government.
The so-called “debt ceiling” is pure bullshit designed to distract us from what is really happening to us.
*Hidden Secrets of Money*:
america defaulted in the 70s. and the financial world (and the bureaucratic permanent, unelected state including their media and academic allies whose budgets benefit from the fake money) has (have) been perverting and corrupting our reality to cover for it ever since.
Do it. I’m ready to see it all burn down to the bitcoin bedrock.
The MMT economists are always good for a laugh. Does the treasury have the legal authority to mint such a coin, Ok maybe?
Does anyone think the private Federal Reserve bank will accept it? Survey says no.
But I agree with them, we should do it. But don’t just mint one coin. Mint 32 and clear all the debt, then we won’t have to pay the Fed the $525B in interest on that debt.