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the debt
(lemmy.world)
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this post was submitted on 07 Jun 2024
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How do they make money out of thin air?
Serious question? Money today is nothing more than a number in an account. When a country needs more of its own currency, it can increase it's account by that amount.
No they cant, that is illegal. You could say they will change the law so that they can do that, but that is not possible (in america) at this time.
Okay, but even if the USA can't change the law regarding states bonds, it is virtually impossible that people stop buying US states bonds since the US Dollar is kinda like the most established currency in the world.
So your argument is completely theoretical.
I hear what you are saying, but that is changing, america is losing its strangle hold on the world. That became most evident with what we tried to do with Russia after their invasion and the cracks in our system are starting to become more obvious. Unless you think that the US will be the worlds reserve currency forever, there will be a time when it falls.
I see what you mean, but this is not about having a strangle hold on the world or being the world's reserve currency. This is about having your own currency and collecting taxes in this currency. As long as a country collects taxes in its own currency there will be demand for that currency.