By far the best reason for a National Divorce is that the red states need their own currency zone. Now. Immediately.
And this is worse than the current situation how? At least they'd have currency to pay for labor!
-
-
Savings end up as paper instead of investment backed by real economic activity. They wouldn't pay labor, would hoard blue paper
-
I'm confused. Are you saying nobody would want/accept red paper, such that it couldn't pay laborers and animate the economy?
-
Few people would invest in job creating endeavors in red states if they can hold blue paper that gets an above market return.
-
Are you saying red-dollar states would overconsume and underinvest, or that they'd have excess capacity / a demand deficit?
-
Both demand deficit and low capacity because people would be hoarding blue dollars instead of spending and investing in capacit
-
Demand deficits just mean the central bank creates more money. Red states currently have demand deficits *and* no investment.
-
...of course, this is all mad fantasies of adequacy because a real Red State Central Bank would adopt a gold standard.
End of conversation
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.