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This isn't meant to excuse deficits, youtube
Deficits by the monetary sovereign should be monster beats website news script the norm, not the exception. Otoh, fiat should only be legal tender* for government debts, not private ones. That should optimize the fiat creation rate since if the monetary monster beats website news script sovereign overspends relative to taxation and the real beats studio philippines 50 years growth rate then only the monetary sovereign and its payees should suffer; i.e. the stealth inflation tax is abolished. beats studio philippines 50 years
*But voluntarily useable for private debts too.
I put the "not" in the wrong place. I meant to say that a deficit in the public sector is defined as "going into debt" while a deficit in the household sector is defined as "not paying debt obligations when the payments come due" .
beats studio philippines 50 years Banks may no longer create new money with that insignia. If they want to make loans they must either transfer savings of her existing money or create their own money and honour it themselves. Mary Mellor
Exactly! That's what ethical money creation is about. Or if the banks (but not a central bank!) are still allowed to extend credit then monster beats green 80's shoesthey and their entirely voluntary depositors and creditors must assume ALL the risk thereof.
The separation of State and private money creation was implied nearly 2000 years in Matthew 22:16-22 ("Render to Caesar..." ). It's too bad we have not yet learned that lesson or if we ever knew it to have forgotten it. Such is the price of Biblical ignorance beats studio philippines 50 years.
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One could further emphasise money as flow vs.beats studio information junkie trunk money as quantity. Private wealth is largely concerned about accumulating money as quantity, an inherently unstable or "energy condensing" pursuit. The stock market values companies according to their ability to push money uphill to investors beats by dre over ear and out of the real economy.
Real people act according to money as flow. We work contently when money flows in our direction and become distressed when disconnected monster beats green 80's shoes from the flow. Our macro problems are largely due to broken circuits of money flow, also known as corporations and assets, and monetary easing is a poor substitute for this broken surplus recycling.
The sooner economics becomes a science of graphs and flow, instead of scalar aggregates, the more relevant and useful it will be beats studio philippines 50 years.