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Joined 2 years ago
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Cake day: December 23rd, 2023

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  • This debt in part (an ever smaller part) represents created value.

    Quick explanation is: produce more > need more money, otherwise deflation > fed prints money > feds “buys” bonds with the newly printed money (to make it available) > gov spends the money in the economy.

    Problem is every day money is printed much faster than the economy actually grows, so instead of avoiding deflation, it causes inflation.

    If we (saying “we” because every country does the same thing) strictly printed money to follow economic growth, then economy would slow down significantly. Is that bad? I don’t think so. We already make several times more than we need. Any new thing we want can still exist in slow growth.