Re: Keynesian Christmas!-- and the collapsiing international

[Warren Mosler <mosler@xxxxxxxx>]

Bruce McFarling wrote:

> Warren,
>
> I assume that when you say that the new currency can be
> used to pay taxes, you mean domestic taxes, not tariffs

Why not any payments to the govt?  The govt. no longer has any
need for fx, does it?  It has/can default/ed on all peso/$US debt of
consequence.

> ... then a drive for domestic tax compliance

Not sure what 'drive' means here.

> would be
> softened by the discount between the two, and politically
> by the fact that the currency enters the economy in
> providing jobs, and the tax liability would provide
> the support for the inconvertible currency.
>

I like to say that at the macro level workers work for the new currency
to be in compliance with new
currency tax obligations.  The new currency 'begins' with the tax
requirement.

Best,

w

>
> Virtually,
>
> Bruce McFarling, Shortland, NSW
> ecbm@xxxxxxxxxxxxxxxxxxx