Why does Countries have to borrow money from private banks?.?Why does Countries have to borrow money from private banks?. If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. The difference between the bond and the bill is that the bond lets the money brokers collect twice the amount of the bond and... |
Not all Nations are equal, but USA does not have to borrow money at all or import the majority of goods that we do. It is done because it is good for the whole world, even though it's not always best for America. We have sufficient food and resources to be fairly self-sustaining, but our government cares less about its citizens and more about being a player on the global front, so it engages in activities that aren't necessarily in our best interests as a society.
The element that 'makes the bond good' today is the willingness of the Congress to levy taxes to repay the bond AND the willingness of the people to pay those taxes.
Naturally, the willingness of Congress to spend more than its current tax revenues is why the government issues bonds in the first place.
Edison lived in a time when money was directly convertible into gold. The value of the dollar versus gold was fixed from 1789 until 1934 and did not change at all.
Since then, the value of the dollar has fallen, fallen, fallen -- which is what you expect when a government issues more debt [or dollars] than it seems the Congress will vote to repay or the people will willingly pay in taxes.
what is this? organized theft from the savers of America in order to pander to the spenders. My advice is to buy assets that the government either can't control [gold] or can't do without [farmland] and otherwise spend, spend, spend. Those dollars you're spending today won't be worth 20 current cents by the time a couple of decades go by.
Money is only a proxy for wealth. What gives money its value is that people will trade real wealth (goods and services) for it. If the government prints too much money, then people will trade less for it (inflation) or stop using it altogether.
Governments can create money, but they can't create the wealth it represents. To acquire that wealth, they must either tax or borrow.
P.S. Edison should have stuck to light bulbs.
Youtube money as debt.
We could simply create the money instead of borrowing it at interest but if we did that we would need a different monetary system. Also of late people have been borrowing from the us at near negative interest rates just to have a safe place to put their money.
