OT: Can anyone explain this to me?

[pseudonym]

So, the government can print money? But the government also borrows money? Where does the printed money come from? Where does the borrowed money come from? Where does it go? I find this confusing. I know there are people on this board that understand economics better than me. Explain it to me like I'm 10 5.

 

[OG Goat Holder]

I don't get economics either. The only thing I can come up with is that is where inflation comes from.

All these lending back and forth is where it really gets confusing.

 

[horshack.sixpack]

So, the government can print money? But the government also borrows money? Where does the printed money come from? Where does the borrowed money come from? Where does it go? I find this confusing. I know there are people on this board that understand economics better than me. Explain it to me like I'm 10 5.

deep fake

 

[dorndawg]

So, the government can print money? But the government also borrows money? Where does the printed money come from? Where does the borrowed money come from? Where does it go? I find this confusing. I know there are people on this board that understand economics better than me. Explain it to me like I'm 10 5.

economics

Economics is the study of the economy, or the part of a society that creates wealth. Wealth is not just money. Wealth comes from the production of goods and services, which…

kids.britannica.com

 

[T-TownDawgg]

Hardly a simple answer, but this was the best eye-opening doc I’ve seen on the subject.



Edit: if you don’t want to watch something like this and take more than five minutes to understand this problem, you’re part of the problem since you also likely do as much research into who you vote for.

 

[wdawg44]

deep fake

You would have to think

 

[jethreauxdawg]

Where does the borrowed money come from? Where does it go?

Jekyll Island. Owners of the Fed

 

[T-TownDawgg]

You would have to think

Seems fake, and yet it’s not that far from reality when you sift through the fancy economic terms and word salads that gloss over the plain truth.

 

[NWADawg]

I do math, not economics. So I understand this part. If you divide something into pieces, it doesn't matter how many pieces you divide it into, the pieces still only add up to the whole. You don't get more of whatever by making more smaller pieces. Seems this is what printing money does. We only have so much value. If we print more money, then we have more pieces (dollars) that are smaller (worth less) =>inflation. It doesn't change the beginning overall value.

To get more, you have to take it from somewhere other than what you started with (borrow).

 

[Boom Boom]

So, the government can print money? But the government also borrows money? Where does the printed money come from? Where does the borrowed money come from? Where does it go? I find this confusing. I know there are people on this board that understand economics better than me. Explain it to me like I'm 10 5.

Can't watch the video right now, but I'll try to provide some insight.

A lot of times the govt "prints money" by borrowing money. They're not necessarily physically printing paper notes. It's arguable as rather they're really creating money at all. An example, the US Treasury issues bonds. These bonds promise a payment back over time, with interest. Some entity purchases these bonds, with actual money. The US Treasury then spends this money. Most Milton Friedman types say this is "printing money". BUT....this money already existed. The entity that purchased the bonds already had the money in hand.

 

[85Bears]

Federal Reserve, a privately owned bank, prints money out of thin air and loans it to our govt(US Treasury), at interest.

constitution calls for congress to coin money, so we should have debt free currency but we don’t, as the federal reserve act of 1913 was passed.

originally our currency was backed by gold and silver to give it stability and to prevent chicanery by the money printers. Nixon took us off the gold standard, and now they can print an infinite amount of paper with no audit or oversight.


None of this makes sense, but it is true.

 

[greenbean.sixpack]

you’re part of the problem since you also likely do as much research into who you vote for.

jokes on you, I don't vote.

 

[The Cooterpoot]

It's time to go back to gold and poontang?

 

[T-TownDawgg]

jokes on you, I don't vote.

Kudos
Me neither. My research has brought me to the same conclusion on politics that George Carlin came to years ago.

 

[TNDawg1]

 

[Boom Boom]

I do math, not economics. So I understand this part. If you divide something into pieces, it doesn't matter how many pieces you divide it into, the pieces still only add up to the whole. You don't get more of whatever by making more smaller pieces. Seems this is what printing money does. We only have so much value. If we print more money, then we have more pieces (dollars) that are smaller (worth less) =>inflation. It doesn't change the beginning overall value.

To get more, you have to take it from somewhere other than what you started with (borrow).

Baby-Sitting the Economy

Twenty years ago I read a story that changed my life. I think about that story often; it helps me to stay calm in the face of crisis, to remain hopeful...

slate.com

 

[horshack.sixpack]

I do math, not economics. So I understand this part. If you divide something into pieces, it doesn't matter how many pieces you divide it into, the pieces still only add up to the whole. You don't get more of whatever by making more smaller pieces. Seems this is what printing money does. We only have so much value. If we print more money, then we have more pieces (dollars) that are smaller (worth less) =>inflation. It doesn't change the beginning overall value.

To get more, you have to take it from somewhere other than what you started with (borrow).

Alternative: remain a world power willing to nuke anyone who gets serious about debt collection. One-half a sarcasterisk...

 

[aTotal360]

deep fake

Jared Bernstein has a degree in music, plays jazz, and is a social worker. He a big buddy of Obama and has spent his whole life in the NYC democratic cabal. He doesn't know much about real economics and simply wants everything "to be fair". This guy can't balance a checkbook.

All Together Now (book) - Wikipedia

en.wikipedia.org

 

[horshack.sixpack]

Jared Bernstein has a degree in music, plays jazz, and is a social worker. He a big buddy of Obama and has spent his whole life in the NYC democratic cabal. He doesn't know much about real economics and simply wants everything "to be fair". This guy can't balance a checkbook.

All Together Now (book) - Wikipedia

en.wikipedia.org

I don't think that "fair" is a bad place to start. I take exception to anyone telling me that equal and fair are the same thing. I've always treated my kids fairly, but I've not always dealt with them equally. Given the same exact circumstances around any particular issue, equal might actually be fair, but it is rare that any two people experience the exact same circumstances. At its best government policy tries bridge gaps that create uneven playing fields to provide opportunities for more people. At its worst government simply rearranges playing fields via bad policies where unintended consequences have more impact than the policy itself and the field just tilts in a different direction.

Economic Lesson: Stay aware of government changes and try to position your business in a place to fill the void created by new legislation.

 

[aTotal360]

I don't think that "fair" is a bad place to start. I take exception to anyone telling me that equal and fair are the same thing. I've always treated my kids fairly, but I've not always dealt with them equally. Given the same exact circumstances around any particular issue, equal might actually be fair, but it is rare that any two people experience the exact same circumstances. At its best government policy tries bridge gaps that create uneven playing fields to provide opportunities for more people. At its worst government simply rearranges playing fields via bad policies where unintended consequences have more impact than the policy itself and the field just tilts in a different direction.

Economic Lesson: Stay aware of government changes and try to position your business in a place to fill the void created by new legislation.

Treatment is qualitative. That's where the left gets you. They want to harp on immeasurable things so there is no "goal post".

Personally, I want my economist to have a quantitative mindset. We can agree to disagree. Regardless, that clown has zero business doing what he's been appointed to do.

 

[dorndawg]

Treatment is qualitative. That's where the left gets you. They want to harp on immeasurable things so there is no "goal post".

Personally, I want my economist to have a quantitative mindset. We can agree to disagree. Regardless, that clown has zero business doing what he's been appointed to do.

In fairness, economics is probably 80% feelings and vibes.

 

[Howiefeltersnstch]

80% feelings and vibes ?? Do you think the bank will accept that I feel like my car is paid off ? That's the vibe I'm getting from it. It takes $27.56 today to buy what one dollar would purchase in 1880.

 

[Boom Boom]

Jared Bernstein has a degree in music, plays jazz, and is a social worker. He a big buddy of Obama and has spent his whole life in the NYC democratic cabal. He doesn't know much about real economics and simply wants everything "to be fair". This guy can't balance a checkbook.

All Together Now (book) - Wikipedia

en.wikipedia.org

That would make him a neoliberal. Out of fashion with the Democratic Party currently.

ETA: looking into him a bit, he was considered an outsider to Obamas team, more progressive than the neoliberal centrists that dominated that administration. That makes it make a little more sense that Biden gave him a job.

 

[aTotal360]

In fairness, economics is probably 80% feelings and vibes.

Like Dave Portnoy picking horses...

 

[pseudonym]

Jared Bernstein has a degree in music, plays jazz, and is a social worker. He a big buddy of Obama and has spent his whole life in the NYC democratic cabal. He doesn't know much about real economics and simply wants everything "to be fair". This guy can't balance a checkbook.

All Together Now (book) - Wikipedia

en.wikipedia.org

I fact-checked his music credentials: True

 

[pseudonym]

If you divide something into pieces, it doesn't matter how many pieces you divide it into, the pieces still only add up to the whole. You don't get more of whatever by making more smaller pieces.

So why have I been asking for my pizza to be cut into eight slices instead of six slices when I'm really hungry?

 

[Drebin]

deep fake

 

[horshack.sixpack]

unsure what got rescued by joking around about deep fakes, but glad I could be of service

 

[ZombieKissinger]

I think MMT is the idea that you should print whatever you have to to accomplish your policy objectives and let people deal with whatever inflation results, but it’s been a couple years since I looked at it, and I’m sure that’s simplistic

 

[dorndawg]

I think MMT is the idea that you should print whatever you have to to accomplish your policy objectives and let people deal with whatever inflation results, but it’s been a couple years since I looked at it, and I’m sure that’s simplistic

MMT is pseudoscience and also far more sound of a theory than supply-side economics.

 

[Boom Boom]

I think MMT is the idea that you should print whatever you have to to accomplish your policy objectives and let people deal with whatever inflation results, but it’s been a couple years since I looked at it, and I’m sure that’s simplistic

It could be seen as evidence of the horseshoe theory. MMT takes the hard right view of fiat money and applies it to spending. Its fiat money anyway, so use it to cover spending rather than taxation. Use taxation to control inflation.

 

[GloryDawg]

Cut out all the free **** they give away here in the United States and around the world, the US Government would have a surplus and pay more to the national debt more than the 1 trillion of interest each year. There is enough revenue to do that.

 

[dorndawg]

Cut out all the free **** they give away here in the United States and around the world, the US Government would have a surplus and pay more to the national debt more than the 1 trillion of interest each year. There is enough revenue to do that.

Which free sh`it to you want to eliminate? Like mortgage interest deductions, the low tax rate on corporate gains & dividends, employer insurance contributions, child credits, pension/IRA contributions?

You're correct, those would total well over 1 trillion a year. Lotta folks not gonna be happy though., good luck.

 

[GloryDawg]

Which free sh`it to you want to eliminate? Like mortgage interest deductions, the low tax rate on corporate gains & dividends, employer insurance contributions, child credits, pension/IRA contributions?

You're correct, those would total well over 1 trillion a year. Lotta folks not gonna be happy though., good luck.

I am just making a statement. Bankruptcy for this country will not happen because they can stop giving money away and pay their bills without printing money if they have too.

 

[dorndawg]

I am just making a statement. Bankruptcy for this country will not happen because they can stop giving money away and pay their bills without printing money if they have too.

It also isn't especially likely to happen when you consider how robust the USA economy is

 

[pseudonym]

Me:
Please explain Modern Monetary Theory to me like I'm five-years-old.

ChatGPT:

Alright, kiddo, imagine you have a big piggy bank. Modern Monetary Theory (MMT) is kinda like that piggy bank.

Now, usually, people think that the government can only spend the money it collects in taxes, just like you can only spend the money you save in your piggy bank. But MMT says something different. It says the government can create more money whenever it needs to, kinda like magic! But, just like with your piggy bank, there are rules.

MMT says the government can keep spending as long as it doesn't cause too much inflation. Inflation is like when the prices of things go up too fast, so your pocket money doesn't buy as much candy anymore.

So, in simple words, Modern Monetary Theory is like saying the government has a special piggy bank where it can make more money, but it has to be careful not to make too much or everything will get too expensive.

 

[ababyatemydingo]

horse hack

 

[blacklistedbully]

I don't think that "fair" is a bad place to start. I take exception to anyone telling me that equal and fair are the same thing. I've always treated my kids fairly, but I've not always dealt with them equally. Given the same exact circumstances around any particular issue, equal might actually be fair, but it is rare that any two people experience the exact same circumstances. At its best government policy tries bridge gaps that create uneven playing fields to provide opportunities for more people. At its worst government simply rearranges playing fields via bad policies where unintended consequences have more impact than the policy itself and the field just tilts in a different direction.

Economic Lesson: Stay aware of government changes and try to position your business in a place to fill the void created by new legislation.

And this is an area where the left has gone-off-the-rails. moving from promoting "equality" to "equity". From equal opportunity to equal outcomes. Anyone without their head-in-the-sand knew this was going to be disastrous for our country.

 

[karlchilders.sixpack]

Translation, we are in deep shat, and can't find enough dirt to cover it up.

 

[pseudonym]

And this is an area where the left has gone-off-the-rails. moving from promoting "equality" to "equity". From equal opportunity to equal outcomes. Anyone without their head-in-the-sand knew this was going to be disastrous for our country.

I agree with Bernie: Equality of opportunity, not outcome.