For those who find it hard to accept Modern Monetary Theory’s claims that currency sovereign nations with fiat currencies are unconstrained in the amount of their currency that they can create, & that they do not fund their spending from tax or bonds or anywhere
A thread:
A thread:
In my sovereign castle/home, say I set up a monetary system whereby I issue the kids with hand written notes of exchange for the chores they do, that they can exchange for treats or privileges from me.
They can trade these notes, let’s call them Relph$, amongst themselves.
They can trade these notes, let’s call them Relph$, amongst themselves.
To make sure that they need to use my currency I impose a tax upon them of so many Relph$ per year with actual penalties should they fail to pay them.
The taxes that I receive from them I securely destroy so the little buggers can’t double dip.
The taxes that I receive from them I securely destroy so the little buggers can’t double dip.
I don’t need their tax Relph$ to spend more, why would I? I am the monopoly issuer of my currency, I can create as many as I need, just pen & paper, regardless of how many I have spent before, or taxed.
If I want a more modern system, instead of issuing notes I just have a spreadsheet where I record how many each kid has, then when it comes to tax time I can just deduct the tax from their Excel spreadsheet cell, exactly as happens with the A$ or the US$ or £Sterling etc
@threadreaderapp unroll
