But this that L. Randall Wray is talking about is total bullshit, asneiraça. The government can cre

The St. Louis Fed, said Randall L. Wray: "As the sole manufacturer of dollars, Whose debt is denominated in dollars, the US government can never Become insolvent, ie unable to pay its bills In this sense, the. government is not dependent on credit markets to Remain operational. Moreover, postal annex there will always be a market for US government debt at home because the US government has the only means of creating risk-free dollar-denominated assets. "Always think what the great Danish physicist Niels Bohr said of quantum theory also applies to the system of fiat money: "Anyone who is not shocked by quantum theory has not Understood it." And here is a post with absolutely postal annex no original idea.
hahaha have any messages when the most touted post is one where you do not give any "original" guess on the subject! hahaha But ironies aside, the relationship created in the above post was great. You turned information into knowledge! October postal annex 5, 2012 13:56
But this that L. Randall Wray is talking about is total bullshit, asneiraça. The government can create risk-free assets postal annex as the market postal annex accepts that such assets are risk-free. If the market decides that does not consider the dollar an active risk-free, the US government will have to balance the budget by force or issue in foreign currency. Well, the ability to sell debt in dollars is not a divine right. October 5, 2012 15:30
what Irenaeus said comes in handy TBM against the critique of fiduciary currency. confidence question. Or would normally accept postal annex quietly that makes more sense to have a means of payment based on a bright yellow stone? postal annex October 5, 2012 15:38
Ultimately, the dollar ballast is indexed postal annex in confidence in the performance postal annex of the US economy, especially its industry that reinvents itself, and never invested so much in history of production technology, much raising productivity. Also the dollar as the world currency, has its increased demand as increasing international reserves of developing countries and the presence of a greater number of trade internationally. While this happens, will catch resources issues paper to 0.75% or less, is your debt 30%, 70% or 150% of GDP. Leonardo. October 5, 2012 15:41
Irenaeus, this stretch I took the Wray is the Fed's own material. I fully agree with the rest that said, and I think this NMT something whimsical. The right to issue is limited to the extent that the market accepts the currency and securities (which 2 anons said). Hence the shock with the idea of fiat money, it be based on something as elusive as "trust." While there, it's premise that there is no such break if the financing is in local currency. To take a case, the Bank of England last year, I am not mistaken, has funded more than 100% of the UK debt rollover, and nothing postal annex happened. October 5, 2012 17:23
"Well, the ability to sell debt in dollars is not a divine right." Technically, of course q is not. but in practice, to read a blog late, the theory is different. in a shorter time-frame, and within a certain situation (there is still no substitute candidate, as the Euro has water), postal annex the jocular comment is very close to the truth. October 6, 2012 17:31
can tell me if the current real estate postal annex bank you can already buy the furniture and packaging them in a MBS? here in Brazil it should come with the the new mode "my house my life" October 6, 2012 17:31
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I'm an economist, paused a career in the financial market for a master's degree. Live from Cambridge, MA and São Paulo. Blog Moto: "If economists Could manage postal annex to get Themselves thought of the humble, competent people on a level with dentists, That would be splendid." - John Maynard Keynes
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