Whenever I hear a politician saying “we need to run government budgets like a household budget” I 
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W odpowiedzi do @mijustin @tylertringas
Genuinely asking: I haven’t really heard a healthy reason why we shouldn’t strive for closer to break even. Printing money taken to an extreme is dangerous, no?
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Tyler Tringas podał/a dalej Tyler Tringas
This is my reason. "Break even" for governments is really the convergence point between interest rates and our ability to deploy capital in a societally useful way (above those interest rates). Almost always somewhere in deficit except w/ high rateshttps://twitter.com/tylertringas/status/1387038754989215754?s=20 …
Tyler Tringas dodał/a,
Tyler Tringas @tylertringasW odpowiedzi do @tylertringas @marshalPut another way, not running a deficit = there’s no way we could productively invest in our society where benefits would exceed the interest cost. At near 0% interest rates, you gotta be pretty out of ideas to run a break-even government1 odpowiedź 0 podanych dalej 0 polubionych -
Except that interest rates wouldn't be near 0% if it weren't for central banks printing money to buy up treasuries. In a free market, the interest rate would be way higher. There's a reason why asset prices are soaring to account for the currency devaluation happening right now.
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There’s a balancing act here, to be sure. But “free market” can’t really apply to central banks.
They literally have the power to raise / lower interest rates.
@StephanieKelton lays out a compelling argument in her book. (Chris, I’m curious: are you in favor of higher tax?)2 odpowiedzi 0 podanych dalej 1 polubiony -
W odpowiedzi do to @mijustin@tylertringas i jeszcze
That's my whole point. We don't have a free market anymore due to central banking so I don't buy the argument that "rates are low so now's the time to run big deficits" Rates are only this low because central banks are suppressing yields to facilitate gov spending.
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W odpowiedzi do to @cgimmer@tylertringas i jeszcze
This is the way it’s always been! You want to go back to a time before central banks? (I know there’s a crypto angle in here somewhere...)
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W odpowiedzi do to @mijustin@tylertringas i jeszcze
Sure we've had central banking for a while but QE wasn't a big thing until the 2008 crises. Now they are actively monetizing government debt even though they claim to be independent.pic.twitter.com/bA6KNPmzZA
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W odpowiedzi do to @cgimmer@tylertringas i jeszcze
I think QE is here to stay. The US used similar policies to remedy the Great Depression, as has Japan. I’m curious though, how would you solve the present-day situation?
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W odpowiedzi do to @mijustin@tylertringas i jeszcze
As a SaaS founder I'd encourage you to read The Price of Tomorrow by Jeff Booth. I subscribe to the thesis that technology is inherently deflationary and we need to transition to a hard money standard where everyone everyone benefits.
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I’ll read it!
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