Originally Posted by
MaxQ
FAAFlyer is right.
Any nation that controls it's own currency can create enough of it to pay any bill it needs to.
It is one of the bases of sovereignty, and why any national debt should be only assumed if it can be paid in the debtor's nation 'coin of the realm'. (a foreign lender may balk at issuing the loan with that stipulation)
AS FAAFlyer pointed out, there would probably be negative consequences if the debt was paid in this manner, but there is nothing to prevent it. Most money (US Dollars anyway) is just entries in a computer. Almost 90% of it doesn't physically exist.
Yeah…. That works as long as the debtors are willing to accept your fiat currency for the debt repayment. The backing of “full faith and credit” is beginning to to wear thin around the world as witnessed by the countries joining BRIX. The other major players in the world economy back their currency with ACTUAL things like commodities. There’s a REASON that the Ruble was able to survive and INCREASE in value after we got them kicked off the SWIFT exchange…. Cause they have gas and oil to sell (which now we know, even Ukraine was still buying from them). If/when the petro dollar gets replaced as world currency, then what? We just gonna print more paper? Write more checks?
I bet Lee and Jackson had the ability to pay off all their debts with Confederate currency…. Right up till about April of 1865.
The fact that we back our currency with “our good name and standing” is laughable at this point.