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35 sats \ 4 replies \ @0xbitcoiner OP 27 Feb \ parent \ on: Public Debt: Threat or Opportunity? econ
Are you saying that governments use and abuse inflation to pay off public debt in all situations?
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33 sats \ 3 replies \ @Undisciplined 27 Feb
The way that's worded, and the order of the bullet points, implies that this is the minority case.
No, it's not all cases, but it is the approach of damn near every national government.
Edit: Also, the incentive is there in all cases.
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21 sats \ 2 replies \ @0xbitcoiner OP 27 Feb
That's what I thought. Governments here in Europe used to use the trick of devaluing the currency (aka printing) a lot, but since the euro came in, that power has been restricted to the ECB.
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34 sats \ 1 reply \ @Undisciplined 27 Feb
But even European governments run perpetual deficits. They're assuming the ECB will pick up the check by printing more Euros.
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41 sats \ 0 replies \ @0xbitcoiner OP 27 Feb
Yes, ECB buys tons of national public debt. It’s just that the control over printing has shifted.
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