A simple question.

[Dovahkiin]

Can anyone cite an example of a sovereign nation using non-convertible, non-pegged, free-floating currency that has defaulted on debt denominated in their currency?

Not so simple answer.......https://www.quora.com/At-what-point-does-national-debt-become-unsustai...

steve

Page Not Found
We searched everywhere but couldn't find the page you were looking for.
So the OP is correct? From what I can see in the URL, it doesn't have any examples.

What about when the Russia defaulted some years ago....and Greece with the Euro ????steve

Re-read my OP.

a sovereign nation using non-convertible, non-pegged, free-floating currency that has defaulted on debt denominated in their currency

 

[Moonglow]

Continue tomorrow..

Que?

 

[Dovahkiin]

Continue tomorrow..

Look forward to it. Same time?

 

[theliq]

Continue tomorrow..

Look forward to it. Same time?

Then I suppose it's NO..steve

 

[Asclepias]

Another question: Do federal taxes fund federal spending, and if you believe this to be true, what makes you think it is?

I would say yes taxes fund federal spending. I believe this to be true because they take it out of my tax payments. If they had no use of my tax payments why would they take them?

 

[Dovahkiin]

Another question: Do federal taxes fund federal spending, and if you believe this to be true, what makes you think it is?

I would say yes taxes fund federal spending. I believe this to be true because they take it out of my tax payments. If they had no use of my tax payments why would they take them?

- create a demand for the US dollar
- reduce aggregate demand when needed
- control inflation when needed
It's policy, not operational these days..
Here, try to see it this way:
Dollars enter the economy when the government spends, taxes remove this money.
If you pay taxes with physical dollars, old and dirty bills go into a literal shredder.
The govt will still mark down that your taxes are paid in a computer though.
If the bills are reusable, they might send it out again. Do you consider this spending? Read my FICA post by the way, you'll find it interesting.
(This is a paper money example.)
These days, Most of this happens with a computer between banks and the fed. Paper bills are becoming less relevant, from what I've seen.

 

[Dovahkiin]

Another question: Do federal taxes fund federal spending, and if you believe this to be true, what makes you think it is?

I would say yes taxes fund federal spending. I believe this to be true because they take it out of my tax payments. If they had no use of my tax payments why would they take them?

It doesn't help that most politicians actually believe federal tax revenues actually "fund" things. Federal tax revenue is destroyed.
Federal Taxes have no operational relationship to expenditure.

 

[Dovahkiin]

Federal expenditures are fiat.

No tax dollars or borrowing are required.

 

[Asclepias]

Another question: Do federal taxes fund federal spending, and if you believe this to be true, what makes you think it is?

I would say yes taxes fund federal spending. I believe this to be true because they take it out of my tax payments. If they had no use of my tax payments why would they take them?

- create a demand for the US dollar
- reduce aggregate demand when needed
- control inflation when needed
It's policy, not operational these days..
Here, try to see it this way:
Dollars enter the economy when the government spends, taxes remove this money.
If you pay taxes with physical dollars, old and dirty bills go into a literal shredder.
The govt will still mark down that your taxes are paid in a computer though.
If the bills are reusable, they might send it out again. Do you consider this spending? Read my FICA post by the way, you'll find it interesting.
(This is a paper money example.)
These days, Most of this happens with a computer between banks and the fed. Paper bills are becoming less relevant, from what I've seen.

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

 

[Asclepias]

Federal expenditures are fiat.

No tax dollars or borrowing are required.

Ok. I think I see where you are going with this. I know since we were removed from the gold standard paper money is pretty much worthless. However the concept of money still has worth. No one is going to carry around hunks of gold to pay for things. The understood value of a dollar is translatable to a dollar of goods or services based on supply and demand

 

[Dovahkiin]

Another question: Do federal taxes fund federal spending, and if you believe this to be true, what makes you think it is?

I would say yes taxes fund federal spending. I believe this to be true because they take it out of my tax payments. If they had no use of my tax payments why would they take them?

- create a demand for the US dollar
- reduce aggregate demand when needed
- control inflation when needed
It's policy, not operational these days..
Here, try to see it this way:
Dollars enter the economy when the government spends, taxes remove this money.
If you pay taxes with physical dollars, old and dirty bills go into a literal shredder.
The govt will still mark down that your taxes are paid in a computer though.
If the bills are reusable, they might send it out again. Do you consider this spending? Read my FICA post by the way, you'll find it interesting.
(This is a paper money example.)
These days, Most of this happens with a computer between banks and the fed. Paper bills are becoming less relevant, from what I've seen.

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

 

[Dovahkiin]

Federal expenditures are fiat.

No tax dollars or borrowing are required.

Ok. I think I see where you are going with this. I know since we were removed from the gold standard paper money is pretty much worthless. However the concept of money still has worth. No one is going to carry around hunks of gold to pay for things. The understood value of a dollar is translatable to a dollar of goods or services based on supply and demand

I'm happy you have a genuine interest in discussing this. You are indeed correct that paper money is worthless, dollars are worthless. However, we still want them. Why? To pay taxes, of course. Taxes create demand for the dollar. This is the main purpose of taxes today. I agree with the concept of money having worth, but think about it, the us govt has to make sure people continue to use the dollar and not something like Bitcoin.

 

[Asclepias]

Another question: Do federal taxes fund federal spending, and if you believe this to be true, what makes you think it is?

I would say yes taxes fund federal spending. I believe this to be true because they take it out of my tax payments. If they had no use of my tax payments why would they take them?

- create a demand for the US dollar
- reduce aggregate demand when needed
- control inflation when needed
It's policy, not operational these days..
Here, try to see it this way:
Dollars enter the economy when the government spends, taxes remove this money.
If you pay taxes with physical dollars, old and dirty bills go into a literal shredder.
The govt will still mark down that your taxes are paid in a computer though.
If the bills are reusable, they might send it out again. Do you consider this spending? Read my FICA post by the way, you'll find it interesting.
(This is a paper money example.)
These days, Most of this happens with a computer between banks and the fed. Paper bills are becoming less relevant, from what I've seen.

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

 

[Dovahkiin]

Another question: Do federal taxes fund federal spending, and if you believe this to be true, what makes you think it is?

I would say yes taxes fund federal spending. I believe this to be true because they take it out of my tax payments. If they had no use of my tax payments why would they take them?

- create a demand for the US dollar
- reduce aggregate demand when needed
- control inflation when needed
It's policy, not operational these days..
Here, try to see it this way:
Dollars enter the economy when the government spends, taxes remove this money.
If you pay taxes with physical dollars, old and dirty bills go into a literal shredder.
The govt will still mark down that your taxes are paid in a computer though.
If the bills are reusable, they might send it out again. Do you consider this spending? Read my FICA post by the way, you'll find it interesting.
(This is a paper money example.)
These days, Most of this happens with a computer between banks and the fed. Paper bills are becoming less relevant, from what I've seen.

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

 

[Asclepias]

Federal expenditures are fiat.

No tax dollars or borrowing are required.

Ok. I think I see where you are going with this. I know since we were removed from the gold standard paper money is pretty much worthless. However the concept of money still has worth. No one is going to carry around hunks of gold to pay for things. The understood value of a dollar is translatable to a dollar of goods or services based on supply and demand

I'm happy you have a genuine interest in discussing this. You are indeed correct that paper money is worthless, dollars are worthless. However, we still want them. Why? To pay taxes, of course. Taxes create demand for the dollar. This is the main purpose of taxes today. I agree with the concept of money having worth, but think about it, the us govt has to make sure people continue to use the dollar and not something like Bitcoin.

I dont pay my taxes with paper money. I pay my taxes with virtual money. You seem to be saying that taxes create a demand for the dollar. I was under the impression the strength of the economy did this. You do realize that people do use bitcoin right?

 

[Asclepias]

I would say yes taxes fund federal spending. I believe this to be true because they take it out of my tax payments. If they had no use of my tax payments why would they take them?

- create a demand for the US dollar
- reduce aggregate demand when needed
- control inflation when needed
It's policy, not operational these days..
Here, try to see it this way:
Dollars enter the economy when the government spends, taxes remove this money.
If you pay taxes with physical dollars, old and dirty bills go into a literal shredder.
The govt will still mark down that your taxes are paid in a computer though.
If the bills are reusable, they might send it out again. Do you consider this spending? Read my FICA post by the way, you'll find it interesting.
(This is a paper money example.)
These days, Most of this happens with a computer between banks and the fed. Paper bills are becoming less relevant, from what I've seen.

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

Ok. Thats a little more clear. The federal reserve just "prints" the money the federal government needs. Youre saying there really is no need to pay taxes to the federal government right?

 

[Dovahkiin]

Federal expenditures are fiat.

No tax dollars or borrowing are required.

Ok. I think I see where you are going with this. I know since we were removed from the gold standard paper money is pretty much worthless. However the concept of money still has worth. No one is going to carry around hunks of gold to pay for things. The understood value of a dollar is translatable to a dollar of goods or services based on supply and demand

I'm happy you have a genuine interest in discussing this. You are indeed correct that paper money is worthless, dollars are worthless. However, we still want them. Why? To pay taxes, of course. Taxes create demand for the dollar. This is the main purpose of taxes today. I agree with the concept of money having worth, but think about it, the us govt has to make sure people continue to use the dollar and not something like Bitcoin.

I dont pay my taxes with paper money. I pay my taxes with virtual money. You seem to be saying that taxes create a demand for the dollar. I was under the impression the strength of the economy did this. You do realize that people do use bitcoin right?

The paper money example was used to help explain. Taxes do indeed create a demand for the dollar. You need the US dollar to pay taxes. Has Bitcoin replaced the US dollar? The US dollar has to remain the "main" currency and the government will, and should, do whatever is necessary. Bitcoin is just an example, it is doomed anyways.

 

[Dovahkiin]

- create a demand for the US dollar
- reduce aggregate demand when needed
- control inflation when needed
It's policy, not operational these days..
Here, try to see it this way:
Dollars enter the economy when the government spends, taxes remove this money.
If you pay taxes with physical dollars, old and dirty bills go into a literal shredder.
The govt will still mark down that your taxes are paid in a computer though.
If the bills are reusable, they might send it out again. Do you consider this spending? Read my FICA post by the way, you'll find it interesting.
(This is a paper money example.)
These days, Most of this happens with a computer between banks and the fed. Paper bills are becoming less relevant, from what I've seen.

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

Ok. Thats a little more clear. The federal reserve just "prints" the money the federal government needs. Youre saying there really is no need to pay taxes to the federal government right?

Well we do need to pay taxes so we have a reason to use the US dollar and not go to some other currency. Taxes also can be used to reduce aggregate demand and inflation. Taxes can also remove money if needed.

 

[Dovahkiin]

- create a demand for the US dollar
- reduce aggregate demand when needed
- control inflation when needed
It's policy, not operational these days..
Here, try to see it this way:
Dollars enter the economy when the government spends, taxes remove this money.
If you pay taxes with physical dollars, old and dirty bills go into a literal shredder.
The govt will still mark down that your taxes are paid in a computer though.
If the bills are reusable, they might send it out again. Do you consider this spending? Read my FICA post by the way, you'll find it interesting.
(This is a paper money example.)
These days, Most of this happens with a computer between banks and the fed. Paper bills are becoming less relevant, from what I've seen.

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

Ok. Thats a little more clear. The federal reserve just "prints" the money the federal government needs. Youre saying there really is no need to pay taxes to the federal government right?

Well, I am in favor of lowering taxes to help out working families. We're nowhere near full output, so it's silly that we're screaming about the supposed doomsday that will Come down on us if we run deficits..

 

[Asclepias]

I'm a little foggy on how taxes remove money from entering the economy since it goes to pay people for services rendered to government projects via government contracts etc. Do you mean the physical dollar or the computer dollar? The reason I ask is because your question never mentioned money. It said "funding".

What makes you think taxes "remove money from entering the economy." I think you worded your post wrong. Do you mean "taxes remove money from the economy?' I believe I've explained this already. Federal tax revenue Is destroyed. The government doesn't use revenue to "pay people" it simply adds numbers to an account.

Wait a minute. You are saying they take my virtual money I use to pay taxes and destroy it? I missed your explanation on this concept. Where is it?

They literally subtract the numbers. Federal taxes don't serve a real operational purpose, federal expenditures are fiat. Now, states are a different story, since they can't create dollars from thin air
The government "receives" your taxes and that's the end of the tax receipt.

They satisfy "tax obligations" imposed by the sovereign and that's pretty much it.

Ok. Thats a little more clear. The federal reserve just "prints" the money the federal government needs. Youre saying there really is no need to pay taxes to the federal government right?

Well we do need to pay taxes so we have a reason to use the US dollar and not go to some other currency. Taxes also can be used to reduce aggregate demand and inflation. Taxes can also remove money if needed.

That makes sense when you think about it like that. Too many people still believe or act as if we are on the gold standard.