[ExI] extropy-chat Digest, Vol 215, Issue 40

spike at rainier66.com spike at rainier66.com
Fri Aug 27 15:56:42 UTC 2021

...> On Behalf Of BillK via extropy-chat
Subject: Re: [ExI] extropy-chat Digest, Vol 215, Issue 40

On Fri, 27 Aug 2021 at 15:59, spike jones via extropy-chat
<extropy-chat at lists.extropy.org> wrote:
> I agree it is unlikely to happen.  Eventually of course a balanced budget
will be imposed upon the fed by the lack of lenders.  That will be a most
unpleasant time.
> spike
> _______________________________________________

>...Who needs lenders? !!!  

This is a question I have been asking for a long time.  This problem would
mostly go away if the fed were to admit it cannot keep repaying its loans
indefinitely.  The lenders will go away.

>...With MMT (Magical Money Theory), just print some more.  No Limits on
where the USA is going.

>...So we left the last trillion's worth of stuff behind for the Taliban.
Never mind - Let's have another trillion!  Whoopee!!!  BillK

BillK, the American public seems to not realize who will be the big losers
if the fed keeps printing arbitrary amounts of currency and using it as
surety on their own debt, but BitCoin investors get it.

Americans must ask themselves the obvious question: if the fed fires up its
magic printing press and spins out reams of currency, who get burned?
Answer: federal pensioners first.  Any retired government worker on a
pension, people with annuities, people with bank savings, Social Security
pensioners, anyone with American cash-based assets.  Inflation goes crazy,
suddenly they can't pay the rent nor the grocery bills.

Some still argue that has never happened, but a microscale example of it
damn sure has happened, right in my own neighborhood.  California's bay area
was a sleepy agricultural area until the electronics revolution started
here.  Tech nerds from everywhere wanted to get in on that.  Real estate
prices went crazy.  Property taxes were based on comparable sales, which
meant that people who had lived in the area for their entire lives and lived
in homes with no mortgage were suddenly presented with tax bills far beyond
their ability to pay, leaving them with a stark choice: go broke or move
out.  They couldn't stay.  This transformed the valley.

But there were other places to go.  So what if... we have runaway inflation,
people on fixed pensions cannot afford to stay and cannot afford anywhere
else either?


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