Stefan MolyneuxVerified account

I still don't see national debt as an issue, but I'll go look up unfunded liabilities, because if they are at $180T that seems like a legitimate issue.

The issue is confidence, not the amount. The amount changes the perception. The Romans could have just kept minting worthless coins as the Americans will mint worthless paper. Who owns the worthless paper or the worthless coins matters not. 100% of History, 100% of the future.

American paper is not worthless because the federal government requires taxes to be paid in American paper.

1) We'll remove national debt from the discussion then because it isn't a problem. I did some research on this.

2) As for unfunded liabilities, that's a problem at the state level, because they cannot print their own money. It looks like total state unfunded pensions liability total less than $3T. That's a difficult issue and will probably require a federal government bailout.

3) The federal government, on the other hand, cannot go bankrupt. It literally cannot run out of money. That means federal liabilities like Medicare, Social Security, etc. can *always* be funded by "printing" money.

4) What about inflation? Inflation can be controlled by tax rates - but you DON'T need to tax enough money out of the private sector to actually fund the liabilities, because the liabilities can be funded with printed money. You ONLY need to tax enough to prevent inflation.

5) And the federal government never needs to fully settle its debts, only service the payments. It can continue printing enough money to fund the liabilities and managing taxes to manage inflation, indefinitely. And that's what it will do.

The federal government doesn't control money supply. Only the federal reserve can do that. No fed chairman would go with such a disastrous policy toward hyperinflation.