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View Diary: NYT: It's Krugman Vs. Reinhart & Rogoff, Who Trivialize Their Incompetence And Attack “Left” (246 comments)

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  •  There is no reason (7+ / 0-)

    for "local" governments and agencies not to issue bonds . . . the "household" model works for them.  Borrow now against future income (taxes) for an immediate and ongoing "public good".  And if that doesn't work out then default and go bankrupt.

    Not so for the currency issuing national government, however.  In that case there is no reason for the government to issue bonds, since it can simply issue currency and accomplish the same public good without paying "interest" to anyone (of course that "interest" is the bonds real purpose, which is to be a nationally mandated transfer tax benefiting the wealthy).  Of course if currency printing gets out of hand the resulting "inflation" devalues the currency . . . but no more than uncontrolled borrowing does, since "creating" debt is just another way of creating currency (it's the side benefit to the wealthy that is the problem).

    Fake Left, Drive Right . . . not my idea of a Democrat . . .

    by Deward Hastings on Fri Apr 26, 2013 at 06:10:42 AM PDT

    [ Parent ]

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