[MonteQuest]

$this->bbcode_second_pass_quote('mkwin', ' ')The government deficit is a function of our monetary system - if the government runs a deficit the central bank creates the necessary funds out of thin air and gives them to the government. The government then spends the funds on what they need to. This money then enters the money system when the government buys goods and services leading to an increase of the money supply (and your right, inflation).

[mkwin]

$this->bbcode_second_pass_quote('MonteQuest', '
')
No correlation? Energy creates growth and growth creates money.

[MonteQuest]

$this->bbcode_second_pass_quote('mkwin', ' ')The ability to pay interest comes from the resources available. Obviously, if you have no job you can't pay the interest. However, interest can also come from sacrificing other expenditure to meet the payment. You use your vacation money or you’re to meet the payments. .

[MonteQuest]

$this->bbcode_second_pass_quote('mkwin', '')$this->bbcode_second_pass_quote('MonteQuest', '
')
No correlation? Energy creates growth and growth creates money.

[mkwin]

$this->bbcode_second_pass_quote('MonteQuest', '
')Good lord, man...I am the last person on this site who needs to be schooled on money creation. I think you need to read that thread. Somebody has to buy those govt bonds or securities. Currently, that is about $3 billion at day from China, Taiwan, Japan, and South Korea.

Who will buy those bonds with no assurance of a return in a declining energy world?

Most of the money creation takes place at the banks, not at the FED. Banks will not be making loans. We have the Great Depression to give us a trial run. Lots of goods and services, but no money due to no loans and the retirement of principal.

[mkwin]

$this->bbcode_second_pass_quote('MonteQuest', '')$this->bbcode_second_pass_quote('mkwin', '')$this->bbcode_second_pass_quote('MonteQuest', '
')
No correlation? Energy creates growth and growth creates money.

[MonteQuest]

$this->bbcode_second_pass_quote('mkwin', ' ')The government does not need a 'buyer' of debt. Once it's created it's held by the members of the central bank.

[MonteQuest]

$this->bbcode_second_pass_quote('mkwin', ' ')Do you not see there is no correlation between energy and money supply from that chart?

[keehah]

$this->bbcode_second_pass_quote('', 'g')rowth creates money.

[mkwin]

$this->bbcode_second_pass_quote('MonteQuest', '
')You are on drugs! The countries I listed buy our debt in the form of govt securities that are printed when the money is created. Treasury securities are government bonds issued by the United States Department of the Treasury through the Bureau of the Public Debt. They are the debt financing instruments of the U.S. Federal government. Individual investors, pension funds, mutual funds, insurance agencies, banks, foreign government central banks, can all buy the bonds, effectively loaning money to the treasury.

40% of our debt is held by the foreign central banks, mostly China.

http://www.treas.gov/tic/mfh.txt

What people fail to grasp is this: If the economy cannot grow (along with the money supply) due to a lack of available energy, the govt printing more money won't overcome this.

Why?

Because the energy will still not be there to facilitate the production of goods and services. It will drive inflation to no end, as the huge supply of money competes for fewer and fewer goods and sevices.

Money does not create energy.

[keehah]

$this->bbcode_second_pass_quote('', 'T')he bottom line is the central bank creates the capital and gives it to the government

[mkwin]

$this->bbcode_second_pass_quote('keehah', '')$this->bbcode_second_pass_quote('', 'T')he bottom line is the central bank creates the capital and gives it to the government

[mkwin]

$this->bbcode_second_pass_quote('keehah', '[')$this->bbcode_second_pass_quote('', 'B')ottom line: Taxpayers are now on the hook for a record $59.1 trillion in liabilities, a 2.3% increase from 2006. That amount is equal to $516,348 for every U.S. household. By comparison, U.S. households owe an average of $112,043 for mortgages, car loans, credit cards and all other debt combined.

[AdamB]

$this->bbcode_second_pass_quote('', '
')Towards the end of this passionate book in praise of Enlightenment values the author sounds a defiant but plaintive note. “Persuasion by facts and logic, the most direct strategy,” Steven Pinker writes, “is not always futile.” You can almost hear the “despites” in his mind. Despite the widespread belief among fashionable intellectuals that emotions and tribal loyalties are more important and somehow more authentic than fact-based evidence. Despite the steady stream of news reports (this week including another mass school shooting) suggesting that chaos is eroding the edifice of order. It’s just as well that Pinker — among many other things a professor of psychology at Harvard — concludes that there is some point to logical persuasion, because he has spent several hundred pages using logical persuasion. He equips the reader with the information necessary to join in a defence of

[aldente]

$this->bbcode_second_pass_quote('Nonsense', '.').. everybody panic!

[asg70]

Two posts ago was from 2007. One post before it was 2018. Bumping threads like this after long gaps is definitely nonsense.