Message from @NewRogernomics
Discord ID: 649086572783730688
it's a non issue, really depends on unspent national income and how much employment you want
The US would really have to mess up to end up like Greece of course.
completely different situation, greece is part of a monetary union with other states, they cant devalue or use monetary policy at all
if you owe debt in a 'foreign' currency, all bets are off
EU is a monetary union but not a fiscal union, ulike the US where california taxes are spent in alabam, as well
Well of course, though my point is that what you can do varies by country.
there is no point there, the us can't 'end up like greece' same way denmark cant either. they stayed out of the euro for exactly that reason
Greece had widespread government inefficiencies and corruption that led to that mess.
nah, greece situatin is directly related to the Euro and the monetary union
germany and some others run a surplus, so the other euro countries are stuck because they dont have a fiscal union and they are limited by rules as to what they can do via debt
greek situation was 100% predicted in 90s
Euro zone is a vendor financing scheme for germany, there is nothing the greeks and similar countries could do
Think we are talking about different things. I am talking about a government budget surplus, and the debt directly related only to that.
gov budget surplus is terrible goal under fiat monetary system. the greeks were done no matter what they did as long euro zone has no fiscal union
we arent talking about different things
you just dont understand what you are talking about
i understand why you think the way you do though
just forget all that shit about gov balanced budgets, its non sense when talking about soft currency economics
```gov budget surplus is terrible goal under fiat monetary system``` No it isn't, it is a long-term achievable goal. Only if you try and achieve it all at once do you mess up.
negative
that is going to cause a depression, because gov decifits is how unspent income gets back into the economy(though it can be spent unwisely)
in a barter economy (including gold standard and receipt money), its somewhat possible
but fiat monetary economy is totally different
Eh...multiple countries run at surplus, with gdp growth.
if they have trade surplus, they can, for a while, but entire economy cannot do that
that's how oyu get greece
same way some us states run trade surpluses with each other, but entire internal system cannot
and/or if they have some sovereign wealth situation like qatar or noway, but that won't last and they have their own monetary issues
I think that when a country reaches a certain size it can't achieve an outright surplus, as it will require more resources/goods than it can produce internally.
a COUNTRY as a whole can do a variety of things, but the governments and the monetary system are going to be constrained by the mechancis of the system. gov deficits in a fiat monetary system is essentially unspent income gets back into the economy, else you will get unemployment
the only way to make up for it is to explode private debt, which we saw after the great moderation
that will directly affect worker share of gdp as interest's share of the national income rises, and they you get that version of a breakdown
there is no free lunch with fiat money, but gov debt for the monetary sovereign doesn't work the way you think
That isn't always the case in smaller economies, even if it might be in larger ones.
the size doesnt matter if they arent in a barter system
it's tied to the mechanics of how gov issued fiat money works
in barter system, including gold standards and the like, the same issues are there, but they are shifted almost totally into the private credit arena
extremes would be islamic banking, but they deal wtih the unspent income issue and thus the economic stagnation that results