01-31-2016, 05:48 PM
Quote:What I described above is the way every last major economy in the world has worked for at least the last century!
We'll take this in two parts-
Quote:There is no such thing as a government going broke.
This is not true. It is a flat out lie. Governments can, have, are currently and will in the future go broke. There are countermeasures available- the one currently accepted by the global economy is issuing of bonds against government debt. Increasing the amount of currency produced has proven to be the poorest possible solution to deal with the situation, it was likely the single biggest factor in what ended up being WW2- at least for the European theater.
Quote:Goverments create FIAT currencies (money) and issue it.
Utilizing this power in order to negate debt leads to staggering and crippling inflation, not some of the time, every time.
Now, getting back the actual point you made in your most recent post-
Quote:What I described above is the way every last major economy in the world has worked for at least the last century!
No, the EU doesn't allow a negative budget for their member states. I would say the EU certainly qualifies as a major economy considering it is the largest in the world when viewed as a collection of states. Given that it is the second most powerful currency(in terms of global reach, if UK joined in it would be the most powerful) and it does not allow budget deficits I would say rather emphatically that no, not every government works the way in which you seem to believe.
Quote:Seriously, what the hell is up with you and your German obsession?!
It was the singular event that made debt manipulation by increasing total currency unacceptable for the world. You brought up a very specific combination of factors that allowed for the creation of the Nazi regime.
Quote:You drag it into everything and are worse the SteelCrysis with it!
US, UK, Russia, China and Germany are the five most powerful nations when looking at the modern era. One of those nations has experienced hyperinflation doing exactly what you brought up, and it directly led to a series of events that caused the bloodiest war in history. I could have brought up Hungary in '45-'46- another example where many people believed the reason the government did what you are saying(printed more currency to offset debt) was done *solely* to destroy the middle class. I could have used that example, and that was actually more severe on a mathematical basis(inflationary rate was considerably higher then it was in Germnay), but nobody would have a clue what I was talking about. So, I used the most historically visible example.