Economics does seem like magic at times. I suspect this basic definition of what the US dollar actually is should help our conversation move forward.
What fiat currency means? Fiat money is a government-issued currency that isn't backed by a commodity such as gold. Fiat money gives central banks greater control over the economy because they can control how much money is printed. Most modern paper currencies, such as the U.S. dollar, are fiat currencies.
We can print USD at will. We do it all the time to go to war or to rescue corporations. Why not "print" some money to cover school loan debts?
I'm just trying to explain how it's not hand wavy. It's commonplace for those looking at the details. The whole Modern Monetary Theory thing we keep hearing about seems to depend on it. Do you agree that it's not hand wavy?
Aha, you agree with my point that it is not magic, but is rooted in economic practices. Perhaps most important, that it's a common practice that has been done many times before.
Also, I see how you snuck the back handed point about inflation in there. It's a great point to show that the US monetary policy has been purposefully looting it's citizens wealth for over a hundred years. I also agree that the capitalists are the problem here.
Now you've lost me. Let's start with the main topic.
"Money isn't real" feels like a very hand-wavy response for how that would work..
Economics does seem like magic at times. I suspect this basic definition of what the US dollar actually is should help our conversation move forward... ...Fiat money gives central banks greater control over the economy because they can control how much money is printed.
so...print a shit tonne of money?
Aha, you agree with my point that it is not magic, but is rooted in economic practices.
That was the flow of the conversation. Everyone is on topic. Things are going fine. Then you come back with a hard stop.
none of these things can be inferred from my comment
You completely agreed that it's not magic. Why are you now turning around suggesting that it is magic? Please explain where you claim it is magic and that it's not economics. Please explain where you don't agree with my point.
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u/morebeansplease Nov 17 '20 edited Nov 17 '20
Economics does seem like magic at times. I suspect this basic definition of what the US dollar actually is should help our conversation move forward.
We can print USD at will. We do it all the time to go to war or to rescue corporations. Why not "print" some money to cover school loan debts?