Concerned_Asuran

Concerned_Asuran t1_iye87v0 wrote

>Yes you can repay sovereign debt by printing money

No. You literally don't need to repay sovereign debt because you never borrowed any in the first place. We use "debt" simply because economists got lazy and didn't come up with a different word. But it is completely different from your household transactions.

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Concerned_Asuran t1_iya8976 wrote

No man. He means the US government literally can't owe dollars to anyone. Cities, and States, sure, but not the Fed. It's impossible because the US has monetary sovereignty. Like England, Canada, Japan, etc.

Spain, France and Greece can go completely broke from owing money, for example, because they don't have monetary sovereignty.

Read The Deficit Myth by Stephanie Kelton. It will change your life.

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Concerned_Asuran t1_iya7fg8 wrote

>Government debt isn't like household debt.

Correct.

>Government don't need to pay off debt (or write it off), they just need to service it, and wait for inflation and economic growth to make it basically irrelevant.

Incorrect.

>US world war 2 debt for example was never repaid, but at 285 billion, today, with the US economy reaching 23 trillion, it would represent just 1.2% of the economy.

Ambiguous.

The Deficit Myth by Stephanie Kelton should be required reading in middle and high school. Adults world-wide die of old age still believing in Santa Claus.

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