Loomio
Mon 24 Jul 2017 10:26PM

Paying off our International Debt

MI Mathew Innes Public Seen by 73

can we find a way to repay our debt asap and prevent future governments from Selling out our children's future assets we have treasured and maintained throughout our lives.

JG

John G Tue 1 Aug 2017 6:34AM

The government's 'debt' is the non-government's asset. You can stop worrying. No debt = no money.

CE

Colin England Wed 2 Aug 2017 1:45AM

Currency-issuing governments can keystroke their outstanding debt into oblivion

In other words, a currency-issuing government can always absorb any outstanding liabilities (public debt) if it chooses, and, effectively, never have to repay the obligation.

It can do that by purchasing these liabilities in secondary bond markets, and then just ignoring the maturity obligations, and with the stroke of a computer keyboard set the value to 0.

Alternatively, it is obvious that such a government is never in danger of defaulting on any outstanding liabilities which remain in the non-government sector until maturity and presentation for repayment.

Alternatively, what this clearly demonstrates, is that such a government never has to issue debt in the first place.

My bold.

Read the whole thing but the main point is that a government that creates its own money never has to go into debt and as long as the country has resources to utilise that money will work as the tool it is.

But that brings up another aspect: Digging up and selling a countries resources offshore will rapidly run that countries out of resources. As one example, by my estimations NZ will run out of iron ore in 50 to 100 years at our present rate of selling it off.