The current pervasive/permissive monetary theory that is popular among Federal Government circles is "MMT" or "Modern Monetary Theory".
MMT has some strange (to put it politely) ideas about how money works.
One of them is that money wouldn't exist without powerful state government.
Classic economic theory states that money arises out of relatively short lived barter systems. That money is derived from commonly accepted commodities that people realized could operate as intermediate transactions or store of value. In the past people have used things as varied as tobacco warehouse receipts, shells, metal, feathers, very large stones, and all sorts of commonly traded goods as "money" at different times.
MMT, however, says that money can only arise through central authority and imposition of taxes. That is money came about because of taxation.
As you can imagine the point of this is to place center sovereign authority at the center of all economic and societal development.
According to MMTers there currently a small number of large governments with central banks that enjoy "Sovereign Monetary Authority". Due to their unique place in history and power in the world they are able to "print" money out of thin air. Not all States have this power/privilege, but the USA does.
This means that USA Federal Government doesn't really need to budget anything. They can literally just make whatever money to pay for whatever they want whenever they want. Their is no authority above USA Federal banks.
The idea that the Federal government is restricted by anything resembling a "household budget" is, frankly, ridiculous according to MMTers.
According to MMTers the purpose of taxation is to make money valuable. Unless you obtain money you can't pay taxes. If you can't pay taxes the government will take your stuff and throw you in prison.
And thus taxation is not a requirement to pay for the Federal government. Taxes serve as a form of economic regulation like the Federal Reserve setting interbank interest rates. Taxes are just a form of monetary policy that is used to manage the economy and help control inflation.
It is insane, but this is a popular viewpoint floating around "circles of power" right now.
This is one of those "power corrupts" type thing. People in charge don't like to be told no. So they surround themselves with sycophants who develop a twisted philosophy that essentially makes the centralized state a sort of "god of the economy" that can spend whatever it wants however it wants with no side effects or downsides.
Yeah, I never understand why people say “the rich need to pay their fair share”.
WTF does that even mean? The government is just going to print more money to meet its needs. Until we have a balanced budget, taxes are relatively irrelevant.
The biggest tax we have is inflation and yet it isn’t labeled a tax.
It's amazing that when you don't have enough money you just print more and think nothing will come of it. In Monopoly when the bank runs out of physical money; the Banker simply creates more money by writing IOUs on paper, as the supply is considered unlimited.
We literally treat our banking system like Monopoly rules.
Kind of makes you wonder why do people pay taxes anyway if the government can create money out of thin air and borrow it from itself??
The current pervasive/permissive monetary theory that is popular among Federal Government circles is "MMT" or "Modern Monetary Theory".
MMT has some strange (to put it politely) ideas about how money works.
One of them is that money wouldn't exist without powerful state government.
Classic economic theory states that money arises out of relatively short lived barter systems. That money is derived from commonly accepted commodities that people realized could operate as intermediate transactions or store of value. In the past people have used things as varied as tobacco warehouse receipts, shells, metal, feathers, very large stones, and all sorts of commonly traded goods as "money" at different times.
MMT, however, says that money can only arise through central authority and imposition of taxes. That is money came about because of taxation.
As you can imagine the point of this is to place center sovereign authority at the center of all economic and societal development.
According to MMTers there currently a small number of large governments with central banks that enjoy "Sovereign Monetary Authority". Due to their unique place in history and power in the world they are able to "print" money out of thin air. Not all States have this power/privilege, but the USA does.
This means that USA Federal Government doesn't really need to budget anything. They can literally just make whatever money to pay for whatever they want whenever they want. Their is no authority above USA Federal banks.
The idea that the Federal government is restricted by anything resembling a "household budget" is, frankly, ridiculous according to MMTers.
According to MMTers the purpose of taxation is to make money valuable. Unless you obtain money you can't pay taxes. If you can't pay taxes the government will take your stuff and throw you in prison.
And thus taxation is not a requirement to pay for the Federal government. Taxes serve as a form of economic regulation like the Federal Reserve setting interbank interest rates. Taxes are just a form of monetary policy that is used to manage the economy and help control inflation.
It is insane, but this is a popular viewpoint floating around "circles of power" right now.
This is one of those "power corrupts" type thing. People in charge don't like to be told no. So they surround themselves with sycophants who develop a twisted philosophy that essentially makes the centralized state a sort of "god of the economy" that can spend whatever it wants however it wants with no side effects or downsides.
Yeah, I never understand why people say “the rich need to pay their fair share”.
WTF does that even mean? The government is just going to print more money to meet its needs. Until we have a balanced budget, taxes are relatively irrelevant.
The biggest tax we have is inflation and yet it isn’t labeled a tax.
Leftists
Also leftists:
ChatGPT was helpful for once, asking it this. Thats a good question
excuse me sir, *inserts "independent" fed
In times of hyperinflation buy assets.
It's amazing that when you don't have enough money you just print more and think nothing will come of it. In Monopoly when the bank runs out of physical money; the Banker simply creates more money by writing IOUs on paper, as the supply is considered unlimited.
We literally treat our banking system like Monopoly rules.
Please keep your money out of the banks.. maybe leave an emergency savings in there but nothing more.
It’s either that or investment, where else can we park our spent labor that isn’t in some bullshit Ponzi scheme?
What sort of mattress do you suggest?
Bitcoin
There are state chartered banks. These banks are not part of the Federal banking system insomuch that any financial institution is allowed to be.
And failed their 8th audit in a row. Happy New Year.