• WhatsThePoint@lemmy.world
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    7 months ago

    Every central bank system is a perpetual debt machine. It’s why the founding fathers specifically fought against them being established here. If you print the money then loan it to a government, how does the government pay that interest? Central bank loans the government $100 at 1% interest, even if they spend none of it, how do they pay the 1% when the issuer of the currency is also the loaner? Governments have to continue to accumulate debt in this system. They have always been a perpetual and compounding debt system.

    • FaceDeer@fedia.io
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      7 months ago

      The founding fathers also kept slaves and didn’t let women vote. I’m tired of how Americans deify them, I suggest citing economists as authorities on economics instead of 18th century wealthy landowners.

      • WhatsThePoint@lemmy.world
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        7 months ago

        I’m not deifying them by mentioning something they got right. I’m tired of people’s all or nothing lack of nuance. Humanity would be nowhere without the advancements of flawed people from the past. We can’t use our measuring stick on their lives without a huge degree of hypocrisy considering how much society has changed even in the last half century. For all their short comings, the founding fathers did create the frame work that most modern democracies are built on and ushered humanity away from monarchy.

        • FaceDeer@fedia.io
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          7 months ago

          Most modern democracies are parliamentary, actually. The US system has not been widely mimicked aside from cherry-picking a few specific details.

          Also, monarchy and democracy are not mutually exclusive. I’m Canadian, for example, which is a democratic constitutional monarchy. We still have a king but we elect our government.

          • scoobford@lemmy.zip
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            7 months ago

            Yes, but your king is basically a mascot. If they had any actual power, your system would be less democratic basically by definition.

            • FaceDeer@fedia.io
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              7 months ago

              Sure, but that’s adding quibbles beyond the scope of what I was responding to. We’re a democracy and we still have a monarch.

      • catloaf@lemm.ee
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        7 months ago

        They were the economists of their time. Basic economic theory hasn’t changed in millennia, only opinion on how to manage economies has.

        • FaceDeer@fedia.io
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          7 months ago

          There were economists in the 18th century and none of the founding fathers were one.

          The closest was probably Alexander Hamilton, who ended up as the first treasury secretary. Where he proposed and set up the very central bank that the commenter I was responding to is complaining about.

    • treadful@lemmy.zip
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      7 months ago

      Central bank loans the government $100 at 1% interest, even if they spend none of it, how do they pay the 1% when the issuer of the currency is also the loaner?

      Taxes.

      • Wes4Humanity@lemm.ee
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        7 months ago

        Pretty sure they’re saying if we taxes everyone 100%… Collected all the money from everyone in the country, then gave it all back to the central bank we borrowed it from originally, we’d still owe the interest on the debt… With no more money in the system where would we get the “taxes”?

        • treadful@lemmy.zip
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          7 months ago

          As with most debt, it can’t be paid off immediately or it wouldn’t have been debt to being with. It’s a bet on the future.