#LearnMMT
Congress created money is called "high powered." Roughly, when they pass a bill into law, whatever number is in that bill ($1T, or whatever serves to make that bill become a reality) is "appropriated."
You will hear from them for sure. You will pay them back or you will be made very unhappy. This private debt is truly DEBT LADEN money.
The bank:
- Asset: The right to collect $1,000 plus interest (or confiscate your stuff).
- Liability: The $1,000 they gave you.
This is because
X - X = 0
No matter how big X is.
- Asset: The new hospital wing, happier citizens.
- Liability: The $1T now the economy, which can extinguish federal tax obligations.
But this is not "a loan." It does not have to be "paid back." They can always create more!
Unfortunately, since our fed gov't doesn't help its people nearly as much as they should, we are forced into private debt.
If our fed gov't provided for us, we'd still need private debt but not for EVERY DAY SURVIVAL.
The problem is not that we have "too much national debt" (which is our DEBT FREE savings!) it's the INEQUALITY of that savings.
@ptcherneva:
THAT is why the federal government is paid to not provide for its people: power.
The only way the powerful can stay powerful
is to actively keep the powerless powerless.
#LearnMMT
- Federal government created money is "high powered money" or "exogenous." (It is *EX*ternal to the non-government sector – the economy)
- Bank created money is "endogenous."
To #LearnMMT: