a central bank is like a heart, a pump. every day it’s tasked with pulping say 1 trillion dollars into the economy. it theoretically could just print it all, but that would lead to crazy inflation
this way the pump still is doing its job but then inflation (total amount of blood in the system) only rises by a small amount.
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for a growing body, the blood volume must match metabolism. too little and the system is anemic. too much, and it’s likely feeding cancer.
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note that a red blood cell is useless by itself. it’s only value is through it’s movement and ability to deliver oxygen. for an economic system the movement of money and its delivered payload of information is what’s important.
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in a closed system, the pump’s input/output is equalized, a fully recycled system like the water cycle. when there is external input (usd from china) it creates a dependency as the us is now a debtor to china.
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if taxes are high enough, the system is fully recycled and there is no need for external flow. selling bonds and going into debt is a way of making up for flow deficit
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flow deficit is not a maintainable state just like running a marathon for a year is not maintainable. increased metabolic needs like warfare or infrastructure development use these bonds temporarily to boost flow when needed.
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a credit card or student debt can rocket boost you to a productivity level previously not possible. however they can just as easily fuck you sideways if you don’t understand that it’s supposed to be a strategically timed nitro boost. not a permanent super state.
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question. is the us gov stuck in the same system as using a credit card to pay back a credit card to pay back a credit card?
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if you are borrowing from the creditor in order to pay back the creditor then ur very close to enslaving yourself. the tipping point is when the amount you can borrow no longer can meet your interest payments.
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as long as borrowed funds exceeds interest you have some excess flow slack. you can do something with it to increase its value and pay pack principal. it’s like working from a hospital bed to heal from the stress of the metabolism burst.
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once the cost of the medicine exceeds your income though. then you’re the hospital’s bitch. you need the hospital/creditor to survive because the market has judged and determined that it costs more to keep u breathing than u are worth to the System
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in less civilized times you’d end up a slave. doing anything to live b/c the alternative was death and you valued life more than death. (live free or DIE is a difficult philosophy to put into practice)
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in modern times you declare bankruptcy. no hospital/creditor will every try to save you again because you have no credit. you have to start from scratch and earn every breath you take. no parental figure remains to save you.
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this die-on-the-street-homelessness is the alternative to slavery that ppl forget. most people don’t end up in this state b/c they can leech off parents/friends/relatives as a final plee but those who can’t end up on the street
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the moral of the story is: don’t blood dope for something as stupid as a “gold” medal.pic.twitter.com/pwm53rc77G
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End of conversation
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