Saltwater60
20×102mm Vulcan
Why not just keep spending and taxing people. Biden's $7.3 trillion budget is campaign pitch for spending, tax goals — Reuters
Biden’s $7.3 trillion budget raise corporate and wealthy taxes
- Thread starter Saltwater60
- Start date
RedBreast21
6.5 Creedmoor
Wow. Crazy. 7.3 trillion. Just 6 years ago it was 4 trillion.
"As highlighted in the first infographic, the government ran a budget deficit of $1.7 trillion in 2023, equal to 6.3 percent of gross domestic product (GDP), well above the 3.7 percent average over the past 50 years. The government’s net interest costs totaled $659 billion in 2023, an 87 percent increase from the amount in 2021." From the CBO office CBO Releases Infographics About the Federal Budget in Fiscal Year 2023
"As highlighted in the first infographic, the government ran a budget deficit of $1.7 trillion in 2023, equal to 6.3 percent of gross domestic product (GDP), well above the 3.7 percent average over the past 50 years. The government’s net interest costs totaled $659 billion in 2023, an 87 percent increase from the amount in 2021." From the CBO office CBO Releases Infographics About the Federal Budget in Fiscal Year 2023
Saltwater60
20×102mm Vulcan
Don’t worry he saved us a trillion just ask him.
When you can print off and buy whatever the fuck you want with impunity, then why not?
RedBreast21
6.5 Creedmoor
The truth is our currency is digital. Only about 5% is actual paper.
I have a hard time wrapping my head around the "stop printing money crowd" as it isn't backed by gold and yet many times the same crowd I engage in monetary discussions with, is the "are you buying crypto yet"?
You are either for a currency backed by something of intrinsic value or not. Can't be both.
Unless you are just gambling and understand that both paper and crypto are backed by nothing except faith and sheer numbers of users. One thing is for certain and that is there will be room for only one digital currency in the future. Maybe two now that BRICS plus has announce the role out this year. All others will be eliminated.
Well, they weren't hiring and arming all those IRS agents to audit the country's few thousand Billionaires now were they?
Of course not...
Acronym Agencies run amok and here, with reason! Because Ol' Joe is broke and needs some cash!
Of course not...
Acronym Agencies run amok and here, with reason! Because Ol' Joe is broke and needs some cash!
Celt
.450/400 Nitro Ex
I can't wait to see how taxing the billionaires will result in Less jobs and higher prices for every day common goods. What a great way to make inflation even worse.
spat
.950 JDJ
Fiat currency can work. It has for decades.The truth is our currency is digital. Only about 5% is actual paper.
I have a hard time wrapping my head around the "stop printing money crowd" as it isn't backed by gold and yet many times the same crowd I engage in monetary discussions with, is the "are you buying crypto yet"?
You are either for a currency backed by something of intrinsic value or not. Can't be both.
One thing is for certain and that is there will be room for only one digital currency in the future. Maybe two now that BRICS plus has announce the role out this year. All others will be eliminated.
It could work forever, but the temptation to print more is too irresistible, and eventually the people in charge will print it too fast and the inflation genie will get away from them.
Most of the crypto has an inherent resistance to that particular failure mode. It doesn't have a central authority that can get too greedy. The totals were set at the beginning, and math DGAF about greed.
The thing that will happen to crypto is the opposite. Deflation could cause its collapse as the value rises too fast, since nobody *can* print more to grease the system when the money supply gets too tight.
RedBreast21
6.5 Creedmoor
President Lincoln created a fiat currency the Greenback and used it to pay for the War among the States. Any currency relies on faith. Gaining that faith through the backing of gold or the hatred of a central banking system, it still requires faith. Faith grows into a user base. The larger the base the greater the usage and value the base gives the currency. Lincoln ran into trouble when there was so much Greenbacks in circulation that greed took over and prices went up locally. Trading with overseas nations became a problem. Greenbacks didn't have the faith of foreign countries. But yeah, all currencies have the potential to lose the faith of users. The trick then is controlling the faith.
Depends on the crypto. Something like Bitcoin has a hard cap, and as you said math don't give a flip. Others have declining inflation built in. Dogecoin for example. Every year a fixed amount is mined with no hard cap. So say for easy illustration 1 million doge a year are mined. From year 1 to year 2 thr supply went from 1 million to 2 million, or 100% inflation. From year 10 to 11 it goes from 10 million to 11 million, or 10% inflation. As time goes on the inflation rate relative to circulation decreases, but never stops. I like this design. It helps keep new currency flowing, but after the initial "priming" it doesn't get out of control and it's also predictable which is good from a stability standpoint.
spat
.950 JDJ
Doubling the money supply is only inflation if the goods and services don't also double.
Ideally you would have a money supply that exactly tracked the GDP, but that's not practical. It's easy to increase the supply, but when there is a market contraction (something like covid shutdowns) it's very difficult to claw it back.
For a brand new crypto like doge, you are trying to guess at it's adoption rate.
A doubling of supply works as long as it's adoption has doubled as well. I.e. as long as enough people are buying it with dollars or something.
But, that's a lot of guesswork.