I will be voting NO on the Rules package with #PayGo. It is terrible economics. The austerians were wrong about the Great Recession and Great Depression. At some point, politicians need to learn from mistakes and read economic history. @paulkrugman @StephanieKelton @RBReichhttps://twitter.com/GunnelsWarren/status/1080318713331617792 …
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will buy the debt instead of using their money to make other investments
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But gov is also spending money at the same time, and that money becomes income which flows right into the coffers of pension funds and other investors.
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Is this a parody account? I find it hard to believe you actually believe this nonsense.
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Wait until you find out that I'm an economics PhD student :D
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That just means you’re propagandized by government (and gov-friendly) economists. Have you ever been educated on Austrian business cycle theory? What’s you’re critiques on it?
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My critique on it is that it's incoherent nonsense. The biggest problem in my mind is that when most people today talk about "malinvestment," they're talking about something totally different than the original writers of ABCT were, rendering the whole theory invalid. But, even
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in the original context, the logic doesn't work. More saving doesn't indicate consumer time preference; nor does more saving lead to lower interest rates; therefore interest rates cannot indicate time preference; businesses do not use interest rates to gauge time preference; and
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empirically, businesses pay very little attention to the interest rate when making investment decisions. Put that all together, ABCT has no basis in reality.
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reduces other spending or raises taxes. That only happens if Congress votes for it, which, by and large, they do not do. Larger debt service just means the gov is spending more - which in our current economy, is probably a good thing.
Thanks. Twitter will use this info to make your timeline better. UndoUndo
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Gov is not the issuer of currency, the fed reserve is. The fed res is a private bank, not part of the fed gov in no way. Every $ is borrowed and must be paid back with interest. Futile pyramid scheme
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It's not really appropriate to describe the Fed as "private." The government appoints its leaders, and all of its profits get delivered to the US Treasury. No other "private" company fits that description.
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I stand by my comment, the entire monetary system and it’s appointments are an illusion. It’s family owned
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I’m talking about both. If you don’t pay for things by cutting or raising taxes, you issue debt. Something has to purchase that sovereign debt whether it’s a country or private like a pension fund. So if rates have to rise to make that debt more attractive to buyers then they....
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This is incorrect. Congress could order the Treasury to stop issuing bonds tomorrow if they wanted to. Debt would only rise by the interest on previously held Treasuries until all phased out. You are stuck in a fixed concept of a monetary system. US is monetarily sovereign.
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