Re: Starting Point

[Warren Mosler <mosler@xxxxxxxxxxxxxx>]

--- Gary Santos <evs@xxxxxxxxxxxx> wrote:
> In my continuing effort to appreciate the concept of
> "soft money", I have
> trouble with that this taxation and fiat money link.
> If the private sector
> continues to accumulate bonds (or, "net financial
> assets" as Warren like to
> say) at the rate the two deficits are growing, it
> will come to the point
> that the total value in bonds is worth some
> ridiculous number of decades
> worth of taxes.

right.  if the govt 'tries' to net spend more
than the non govt sector desires to net save
the evidence will be 'upward pressure on the
price level.'
 Money's marginal value should drop
> as there will just be too
> much of it. In all currencies in history, I dare
> say, time and debt
> accumulation killed each of them one after the
> other.

ok, but notice japan is still deflating even with
heaps more deficit spending than the US.
markets will 'tell us' when your 'saturation points'
are being tested.  unemployment is good evidence
there is mucho slack.
warren
 (At least, today we
> are candid enough to rationalize that fiat's value
> is tied to its use as
> tender for taxes. Warren, I am still reading the
> article you pointed me to.)
>
>


=====
http://www.mosler.org
      http://www.moslerauto.com

Primary email contact:  wmosler@xxxxxxxxxx

__________________________________________________
Do you Yahoo!?
Yahoo! Web Hosting - establish your business online
http://webhosting.yahoo.com