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Posted by Uwe Burkheiser (81.210.153.20) on 22:50:27 03/28/04
In Reply to: Re: National Review Online - Questions posted by Warren Mosler
So the ability to extort taxes from the private sector will finally determine what debt level the government sector can bear.
No, the real debt level is a function of the desire to net save the unit of account in the private sector. The private sector 'works' for the govts $ for two reasons- meet tax payments and net save.
>>>Warren, let s agree to disagree on the above point. Since 70 years (Lautenbach) we know that there can be no national net savings in the form of monetary assets in a closed a closed economy. In an open economy that s different and most of us will live to see how the savers fare.
All chartalist assurances that there is no inherent limit on government spending and that deficits don t matter will not erase this simple truth as long as the government does not escape to create MZM without the Fed and the private banking system.
You're missing the point regarding mzm.
>>>Same solution here. Let s just disagree, but I promise to keep learning.
:
: Chartalism is a great tool to explain the workings of a fiat money system as long as you don t look at the gruesome beginnings (which it cannot explain economically)
Of course it does- that's what it's all about.
>>>No, this point is not granted. You need to do some reading.
and at the likely end (which it will not explain for good economic reasons).
The 'end' to a particular currency (not chartalism) is hyper inflation, should tax collection end, etc.
>>>Agreed better wording.
Will be back when running my live permits:
Thanks!!
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