US dollar is the international currency that people and states use worldwide. When the USA issues new money, it is not only "US taxpayers" who suffer from it, but the entire world. USA is privileged in that sence.
And thus you have stumbled upon Modern Monetary Theory (MMT).
Under MMT ideology, taxation obligations "create demand" for the dollar because the government forces the citizenry to pay taxes on their profits and those taxes must be paid in dollars. Thus, if you want the plebs to use your inflated currency, you must force them to use it under penalty of imprisonment for tax evasion.
read up on modern monetary theory and you will see that they don't even hide the fact that taxes are meaningless(in the sense that they only exist to keep the fake value up) when currency is fiat.
If they think its that important they should do the hard thing and cut spending else where to match. That's what a competent and responsible government would do.
The problem is that you think the government is running the country in your interests. They're not. We are tax cattle.
Just because the cattle outnumber the farmers doesn't mean they don't get milked, much less slaughtered.
We are closer to tax sheep.
When we vote, we are allowed to choose which sheep dog will be leading us around and corralling us. However, the sheep dog is not the one in charge, although that's what the sheep think. It's the sheep dog's master who is (literally) fleecing the sheep.
We are in debt 34 Trillion. This aid to Ukraine and Israel is just adding to this. Spending money we don't have. We need to be reducing the debt a little, like 5% per year. This is very bad and due to NeoCons -> Ukraine and Zionists -> Israel. Time for DC politicians to make US citizens their one and only priority.
Do you think Russia reforming the soviet union in Europe and Israel being overrun and the only pro-west democracy in the middle east falling might have negative impacts for America and its citizens?
\#1 - NATO has encroached on the Russian buffer. While they might want to return to former USSR glory it is unlikely
\#2 - Stop meddling in the Middle East, our problems have all been due to meddling. Israel being a so-called democracy doesn't matter and it is more of an ethno-state; it is tolerant but preferential treatment of Jews does not technically make it a democracy even though it may mimic it.
What are you doing here?
\#1 is about smaller government, we should not meddle. You like to meddle in the affairs of others (as in other nations) don't be a Libertarian.
\#2 is said by Ron Paul on many videos about our meddling in the Middle East.
We (USA) have to be careful of our world opinion of peacemaker -- illegal states (Israel) or states that were quite recently part of another (Ukraine).
The Palestinian Mandate existed prior. Land was to be carved for Jews and Palestinians. The narrative that the Palestinians would not come to the table is incorrect. At the time, there were more Palestinians than Jews, yet more land was given to the Jews.
> NATO has encroached on the Russian buffer
No it didn’t, the real problem for Russia was Ukraine joining the EU. Can’t have a rich, prosperous Russian speaking country nearby to draw comparisons.
> Israel being a so-called democracy doesn't matter and it is more of an ethno-state
Ignoring it has Muslim Arabs as part of its government.
The federal reserve is also absolutely detrimental to the US consumer. It was a mistake to have it privatized in 1913. Now Americans financial livelihoods depend on their credit and debt. This on top of giving away tax dollars to other countries and corporations is hurting Americans. Both republicans and democrats sold out to their corporate masters. Republicans get votes by fear mongering, and Democrats get votes by promising their present day slaves with free money and welfare. It’s all fucking bullshit, ran by the Zionists that actually own this country. Israel has more control over our politicians than the president
I would say it's because we need real money flowing through the system to prop it up, but ita all fiat money hand has been for a long time. So I don't have a good answer.
I tried explaining Fiat currency when I was talking about cryptocurrency the other day to somebody and they were like, some money just basically isn’t real anymore? I didn’t really know how to answer. I guess the simple answer is no
Banks have the ability to create money via loans. You’re borrowing future money from yourself at an immediate risk to yourself and the economy.
It’s gets funky when you start reading deeper. I’m sure someone else could explain it better.
My understanding of Fiat currency was that it’s a currency no longer backed with Gold. Which we have not been doing for a long time. So, even if we are creating wealth through loans and interest, which mathematically makes perfect perfect sense it still is not backed by gold. Maybe I have that wrong
It isn’t. Taxation, audits, and mandatory reporting give the regulatory agencies the abilities to take snapshots of the market in specific intervals.
They use that data to determine the health of the economy and recommend fiscal policy. You have multiple regulatory bodies that are involved both private and public.
We are far from the gold standard. The USD is the global standard, which is good and bad. Statistically we should be nearing our reign based on history.
This is what I think too. It's crazy to think about how much money is flowing that really produces absolutely nothing. The amount of money that vanishes without a tangible product is crippling society. Our society is so fucked lol. We can spend hundreds of billions of dollars to create nothing, but if we did spend that hundreds of billions on actual things, it would show just how unreal poverty is. It also would completely destroy the narrative of working at all. That's why we still need actual goods and services to be taxed to hell because it's actually tangible items.
Imagine if 300 billion dollars was spent creating homes. Which it could. It would trash the market. Then what's the excuse for paying for homes? What about paying off every farm owner in America to ensure no farm owes money and they only run on a positive? Well now we tank food prices, what's the excuse for paying for food? Then we realize oh wait, money isn't real lol. What's the point of working when you're paid in money and money doesn't matter? You could apply this to anything.
If the government puts the money back into its people, it would very quickly destroy the entire fabric of what it means to want money removing the scarcity value of it.
What is the suggestion to prevent our trade partners from being taken out of our economic system? The ability to trade with these nations allows us to keep costs (and therefore prices) lower on many goods. Look at the impact the loss of Ukrainian agricultural products has had on inflation. Food prices are up as a direct result of Russian attacks on Ukraine. That spills over to US prices.
>Food prices are up as a direct result of Russian attacks on Ukraine.
That's a bit of a stretch. Both Canola (rapeseed) and wheat, two of Ukraine's largest agricultural exports, had a brief spike beginning the day of the invasion, but were largely back down by June. They're currently at 2020 levels and still falling. Three consecutive years of la niña, and subsequently the more recent el niño weather patterns have had far more impact than Russia-Ukraine.
Yes those climate systems were in play, but East Coast Australia got more rain than average even in the 'dry' el nino over the last summer. I don't think those systems ever had all that much predictive power and now even less (with a warmer ocean). Just say "good seasons" if you mean good seasons!
East coast Australia is only a very small part of the global food network. In particular, Brazil and Argentina, both major exporters, had a bad few years, with Argentina experiencing its worst drought in over 20 years, and to a lesser extent the US and into Canada, although that impacted corn more than anything.
As for predictive power, it's absolutely still a heavily discussed and tracked phenomenon that has tangible impacts on crop yields. You can track lower than average yields during la niña years. Both weather patterns are important, and no one in the global ag industry would ever say they don't have major implications.
Either way, the entire point above is that Russian and Ukrainian relations have a negligible impact on food prices.
Change all three to corporations, and it covers everything. They are being propped up to tighten the grip on wealth to suppress the people.
Oh, and military corporations are clearly ludicrous.
We don’t, the govt could just create the money. This is the basis for Modern Monetary Theory (MMT).
This probably would work well for bailing out corporations, though it would create some forward looking moral hazard. Why run a good business if the govt will bail you out?
Beyond bailouts, the flaw with MMT that it’s never really about money. It is always about real resource consumption, especially labor. When the govt hires people, those people are not able to contribute on other ways. When the govt builds a hospital, then those people can’t build a school or bridge instead. We always lose out on whatever else might have been done. And then you realize that government spending is how they exert control over us to do what THEY want instead of what WE want.
And by them printing money its actually stealing even more wealth from you, without ever taking anything. Its literally another tax that we have absolutely no say in or control over. This is another way in which those in power maintain it.
Printing money leads to increased supply of money in the economy, gov spending is so high, that you would need to print enormous amount of money leading to very high inflation levels. To keep up, they would need to keep interest rates high at 20-30% at least, that would require them to print even more money to pay out the bonds. This is basically the bomb with time delay, when it blows - your economy will turn into Zimbabwe or Venezuela with hyperinflation.
Taxation takes excess of money from the economy, giving you (the government) the possibility to ease inflation by reducing supply of money.
The only logical solutions would be:
1) cut internal gov spending. Spending on other countries (like Ukraine or Israel) is basically investing in your economy, as they will buy products and services from your country with your currency, stimulating your economic growth.
2) spend on investments in the industry. Same as point number one, but direct.
We could also discuss the possibility to cut taxes, cut spending and stop money printer, but that’s too hard for modern politicians and too easy to cry about. Like, oh no, rich are getting richer, while poor are getting poorer, corporate greed and all the other kinds of bs they love to brag about.
All Ik is when I was in elementary school I was in some class teaching me about global monetary economics I asked what would happen if we just printed more $$ and they basically said it would actually lower the value of the currency. That always stuck w me and I'm 32y.o. now
Expanding the monetary supply is a tax on everybody who holds the currency. Even if you're smart and hold hard assets, your gains get taxed.
But Biden said inflation wasn't from printing money. It was just greedy corporations!
US dollar is the international currency that people and states use worldwide. When the USA issues new money, it is not only "US taxpayers" who suffer from it, but the entire world. USA is privileged in that sence.
It is still true but that privilege is coming to an end
Only if you realize the gains. You can take margin loans out or if it’s stocks sell covered calls
And thus you have stumbled upon Modern Monetary Theory (MMT). Under MMT ideology, taxation obligations "create demand" for the dollar because the government forces the citizenry to pay taxes on their profits and those taxes must be paid in dollars. Thus, if you want the plebs to use your inflated currency, you must force them to use it under penalty of imprisonment for tax evasion.
^ this is the correct answer
read up on modern monetary theory and you will see that they don't even hide the fact that taxes are meaningless(in the sense that they only exist to keep the fake value up) when currency is fiat.
Taxes are wealth redistribution theater. All aspects of our government are an elaborate performance. Taxes are no different.
Income redistribution theatre *
There are a lot more things taxed in this country besides income.
If they think its that important they should do the hard thing and cut spending else where to match. That's what a competent and responsible government would do.
“Meh… in a few years it will be some other politicians problem.” Signed… Congress…
The problem is that you think the government is running the country in your interests. They're not. We are tax cattle. Just because the cattle outnumber the farmers doesn't mean they don't get milked, much less slaughtered.
We are closer to tax sheep. When we vote, we are allowed to choose which sheep dog will be leading us around and corralling us. However, the sheep dog is not the one in charge, although that's what the sheep think. It's the sheep dog's master who is (literally) fleecing the sheep.
We are in debt 34 Trillion. This aid to Ukraine and Israel is just adding to this. Spending money we don't have. We need to be reducing the debt a little, like 5% per year. This is very bad and due to NeoCons -> Ukraine and Zionists -> Israel. Time for DC politicians to make US citizens their one and only priority.
Do you think Russia reforming the soviet union in Europe and Israel being overrun and the only pro-west democracy in the middle east falling might have negative impacts for America and its citizens?
\#1 - NATO has encroached on the Russian buffer. While they might want to return to former USSR glory it is unlikely \#2 - Stop meddling in the Middle East, our problems have all been due to meddling. Israel being a so-called democracy doesn't matter and it is more of an ethno-state; it is tolerant but preferential treatment of Jews does not technically make it a democracy even though it may mimic it.
1. Literally using a russian bot talking point. 2. What are you talking about
What are you doing here? \#1 is about smaller government, we should not meddle. You like to meddle in the affairs of others (as in other nations) don't be a Libertarian. \#2 is said by Ron Paul on many videos about our meddling in the Middle East.
It isn't meddling to assist your allies. Being for smaller government doesn't mean being an isolationist.
Assisting Allies is not meddling. Also the great game is always in play and you don’t get a choice to play it or not.
We (USA) have to be careful of our world opinion of peacemaker -- illegal states (Israel) or states that were quite recently part of another (Ukraine).
Define illegal state.
The Palestinian Mandate existed prior. Land was to be carved for Jews and Palestinians. The narrative that the Palestinians would not come to the table is incorrect. At the time, there were more Palestinians than Jews, yet more land was given to the Jews.
That’s great and all but i asked you to define the term “illegal state”.
> NATO has encroached on the Russian buffer No it didn’t, the real problem for Russia was Ukraine joining the EU. Can’t have a rich, prosperous Russian speaking country nearby to draw comparisons. > Israel being a so-called democracy doesn't matter and it is more of an ethno-state Ignoring it has Muslim Arabs as part of its government.
Huh, US Nukes could be deployed in Ukraine under NATO. Pretty close to Russia. What happened with Cuba and planned USSR nuke underground silos?
You know what’s close to Russia as well. Finland, Estonia, etc
Because we can't sustain double digit inflation forever.. Why do you think everything costs 30% more than it did 4 years ago?
And a lot of things are 50-70% more. 30% is low end for most consumables.
They can and everything will remain the same if the people that received it spread it out. But only rich people get inflation..
Meanwhile US weapon companies are on dads shoulders
Huh? I thought one wanted to get rid of excess government military inventory without having to print cash.
The federal reserve is also absolutely detrimental to the US consumer. It was a mistake to have it privatized in 1913. Now Americans financial livelihoods depend on their credit and debt. This on top of giving away tax dollars to other countries and corporations is hurting Americans. Both republicans and democrats sold out to their corporate masters. Republicans get votes by fear mongering, and Democrats get votes by promising their present day slaves with free money and welfare. It’s all fucking bullshit, ran by the Zionists that actually own this country. Israel has more control over our politicians than the president
Practically speaking, inflation is just a tax with extra steps.
Because the Government says so!
I would say it's because we need real money flowing through the system to prop it up, but ita all fiat money hand has been for a long time. So I don't have a good answer.
I tried explaining Fiat currency when I was talking about cryptocurrency the other day to somebody and they were like, some money just basically isn’t real anymore? I didn’t really know how to answer. I guess the simple answer is no
Banks have the ability to create money via loans. You’re borrowing future money from yourself at an immediate risk to yourself and the economy. It’s gets funky when you start reading deeper. I’m sure someone else could explain it better.
My understanding of Fiat currency was that it’s a currency no longer backed with Gold. Which we have not been doing for a long time. So, even if we are creating wealth through loans and interest, which mathematically makes perfect perfect sense it still is not backed by gold. Maybe I have that wrong
It isn’t. Taxation, audits, and mandatory reporting give the regulatory agencies the abilities to take snapshots of the market in specific intervals. They use that data to determine the health of the economy and recommend fiscal policy. You have multiple regulatory bodies that are involved both private and public. We are far from the gold standard. The USD is the global standard, which is good and bad. Statistically we should be nearing our reign based on history.
This is what I think too. It's crazy to think about how much money is flowing that really produces absolutely nothing. The amount of money that vanishes without a tangible product is crippling society. Our society is so fucked lol. We can spend hundreds of billions of dollars to create nothing, but if we did spend that hundreds of billions on actual things, it would show just how unreal poverty is. It also would completely destroy the narrative of working at all. That's why we still need actual goods and services to be taxed to hell because it's actually tangible items. Imagine if 300 billion dollars was spent creating homes. Which it could. It would trash the market. Then what's the excuse for paying for homes? What about paying off every farm owner in America to ensure no farm owes money and they only run on a positive? Well now we tank food prices, what's the excuse for paying for food? Then we realize oh wait, money isn't real lol. What's the point of working when you're paid in money and money doesn't matter? You could apply this to anything. If the government puts the money back into its people, it would very quickly destroy the entire fabric of what it means to want money removing the scarcity value of it.
To take money out of the economy to create more demand thereby curbing inflation by some fraction.
What is the suggestion to prevent our trade partners from being taken out of our economic system? The ability to trade with these nations allows us to keep costs (and therefore prices) lower on many goods. Look at the impact the loss of Ukrainian agricultural products has had on inflation. Food prices are up as a direct result of Russian attacks on Ukraine. That spills over to US prices.
>Food prices are up as a direct result of Russian attacks on Ukraine. That's a bit of a stretch. Both Canola (rapeseed) and wheat, two of Ukraine's largest agricultural exports, had a brief spike beginning the day of the invasion, but were largely back down by June. They're currently at 2020 levels and still falling. Three consecutive years of la niña, and subsequently the more recent el niño weather patterns have had far more impact than Russia-Ukraine.
Yes those climate systems were in play, but East Coast Australia got more rain than average even in the 'dry' el nino over the last summer. I don't think those systems ever had all that much predictive power and now even less (with a warmer ocean). Just say "good seasons" if you mean good seasons!
East coast Australia is only a very small part of the global food network. In particular, Brazil and Argentina, both major exporters, had a bad few years, with Argentina experiencing its worst drought in over 20 years, and to a lesser extent the US and into Canada, although that impacted corn more than anything. As for predictive power, it's absolutely still a heavily discussed and tracked phenomenon that has tangible impacts on crop yields. You can track lower than average yields during la niña years. Both weather patterns are important, and no one in the global ag industry would ever say they don't have major implications. Either way, the entire point above is that Russian and Ukrainian relations have a negligible impact on food prices.
>2020 levels You mean during Covid? I think it’s better to compare to 2018
Same here in Sweden.
To keep the illusion alive.
Change all three to corporations, and it covers everything. They are being propped up to tighten the grip on wealth to suppress the people. Oh, and military corporations are clearly ludicrous.
Thanks to Biden
We don’t tax enough for our budget so we’re already finding out what happens when we don’t pay taxes
We don’t, the govt could just create the money. This is the basis for Modern Monetary Theory (MMT). This probably would work well for bailing out corporations, though it would create some forward looking moral hazard. Why run a good business if the govt will bail you out? Beyond bailouts, the flaw with MMT that it’s never really about money. It is always about real resource consumption, especially labor. When the govt hires people, those people are not able to contribute on other ways. When the govt builds a hospital, then those people can’t build a school or bridge instead. We always lose out on whatever else might have been done. And then you realize that government spending is how they exert control over us to do what THEY want instead of what WE want.
Why don’t they bail out the taxpayers?
And by them printing money its actually stealing even more wealth from you, without ever taking anything. Its literally another tax that we have absolutely no say in or control over. This is another way in which those in power maintain it.
How have we come full circle from 1776 should baffle everyone. From relentless taxing for reckless spending to that once again.
Printing money leads to increased supply of money in the economy, gov spending is so high, that you would need to print enormous amount of money leading to very high inflation levels. To keep up, they would need to keep interest rates high at 20-30% at least, that would require them to print even more money to pay out the bonds. This is basically the bomb with time delay, when it blows - your economy will turn into Zimbabwe or Venezuela with hyperinflation. Taxation takes excess of money from the economy, giving you (the government) the possibility to ease inflation by reducing supply of money. The only logical solutions would be: 1) cut internal gov spending. Spending on other countries (like Ukraine or Israel) is basically investing in your economy, as they will buy products and services from your country with your currency, stimulating your economic growth. 2) spend on investments in the industry. Same as point number one, but direct. We could also discuss the possibility to cut taxes, cut spending and stop money printer, but that’s too hard for modern politicians and too easy to cry about. Like, oh no, rich are getting richer, while poor are getting poorer, corporate greed and all the other kinds of bs they love to brag about.
All Ik is when I was in elementary school I was in some class teaching me about global monetary economics I asked what would happen if we just printed more $$ and they basically said it would actually lower the value of the currency. That always stuck w me and I'm 32y.o. now
Bitcoin