Government debt is not like private debt. Government debt, government bonds, are really just another form of the government-issued fiat money obligations - just like paper money. There really is little difference between government bonds and that paper money in your pocket - except that the bonds pay interest and are harder to cash at … Continue reading Government Bonds are Just Like Government Money
fiat money
The Misunderstood National Debt
A colleague asked for my thoughts on this article/column by Michael Manning in the State News, the Michigan State student newspaper, so I thought I'd post it for all. Basically Mr. Manning reaches the right conclusions with a correct, but weak case. In looking at the issue of the size of the U.S. national debt … Continue reading The Misunderstood National Debt
The U.S. is NOT Bankrupt – It’s Impossible
I'll try to make this point again: the U.S. government can NOT go bankrupt. It's impossible for it to default on U.S. government bonds. Just like it's impossible for Japan, Australia, Canada, the U.K., or any of the other nations that: have a non-convertible, floating exchange-rate currency and that borrow funds in their own currency. … Continue reading The U.S. is NOT Bankrupt – It’s Impossible
EconProph 