Keith Evans
2 min readSep 26, 2021

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I'm the wrong one to talk to if you're expecting someone to defend communism. It simply offers no incentive to drive production, regardless of how much money is in circulation. However, their problems were with that lack of production and not originally with their currency supply.

Debt is the sum total of deficits. Run at a level where you lose confidence from the rest of the world and you’re screwed .

There is no reason for the US to even generate Treasury debt to "fund" its spending, so the rest of the world is irrelevant. A sovereign fiat currency is self funding. There is no market pressure for our domestic spending.

Bringing confidence back is the most painful experience for the common folk.

Ya, those common folk really hate when they have enough money in their economy to fund buying homes, cars and earn good wages. That kind of stuff really tears down confidence.

Doesn’t mean there is never a time to run a deficit but when production is limited by excess demand printing more deficits only creates more demand and as a consequence inflation.

If something is scarce in the economy the currency issuing government must decide if it is necessary, such as food, fuel, etc and may choose to pay an inflated price for it. However, that spending doesn't affect anything else.

Pricing isn't the same as "inflation" and will self correct when the scarcity is resolved and market forces drive pricing down again. Yes, the irresponsible spending just to add demand can cause inflation, which is why we shouldn't do it. However, simply assuming spending is bad is too simplistic to be considered as an "opinion" worth debating.

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Keith Evans
Keith Evans

Written by Keith Evans

Meandering to a different drummer.

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