Day 32

Things are coming in thick and fast today, so I’ll try to summarise the major themes.

No Policies of the #Liberal, #LNP and #Coalition.

#AngusTaylor (Opposition Treasurer, Liberal) hands in his #Economics homework late, it’s got problems.

A derivative that is toxic

“A Coalition government would drive the #budget deeper into #deficit over the coming two years, as the shadow finance minister, #JaneHume, insisted her party’s plan to save $17.2bn by #slashing the number of #Canberra-based #PublicServants by 41,000 through “natural attrition” was achievable.”

If returned to power, the Coalition would gut a long list of environment and clean energy programs, including #scrapping the #NetZero #Economy #Agency, reversing Labor’s #TaxBreaks for #ElectricVehicles, and redirecting money slated for the #HomeBatteries program.

#Reversing tax incentives for green hydrogen would save $1.5bn over four years, and not proceeding with Labor’s critical mineral production tax credits would save $1.2bn, the Coalition’s election policy costings show.”

#AusPol / #treasury / #costings / #economy / #future <https://www.theguardian.com/australia-news/2025/may/01/coalition-costings-federal-election-promises-larger-deficit-cut-foreign-aid-environment-clean-energy>

Est abordable tout ce qui est techniquement faisable… pour les sociétés qui conservent leur souveraineté monétaire.

Démonstration par Peter Cooper (2021) : https://heteconomist.com/the-core-significance-of-taxation-and-currency-sovereignty-in-a-nutshell/

Qui peut dépenser massivement sans obtenir d'argent ?

Un créateur de monnaie : toute administration souveraine sur le plan monétaire.

“A sovereign government does not need to collect taxes or issue bonds to finance spending. It finances directly through money creation.”

– Eric Tymoigne is an associate professor of economics at Lewis & Clark College, NY, who specializes in the fields of #money and #banking, monetary theory, and financial macroeconomics

@economics

Sovereign states invest or spend as much as they want by issuing they own money and credit.

Nobody ever reimburses national debt. Sovereign states restructure it.

“The U.S. government is not like a household. It is the issuer of the currency. It doesn’t need to ‘get’ money from anyone else—not from taxpayers, not from China.”

– Stephanie Kelton (economist, former US Senate Budget Committee Chief Economist)

Is borrowing a burden on future generations?
No, it's not: if the borrower is a nation-state, then no person (children or taxpayers) will be asked to repay.

“Paying off the debt” is just the sovereign swapping Treasury securities (savings) for cash. No burden is passed on to persons.

L'emprunt public est-il un fardeau pour les générations futures ?
Non, ce n'est pas le cas : si l'emprunteur est un État, personne (enfant ou contribuable) ne sera appelé à rembourser.

Le « remboursement de la dette » consiste simplement pour l'État à transformer des titres du Trésor (de l'épargne) en argent liquide. Aucune dette n'est transmise aux personnes.

Sovereign states obtain funding by issuing they own money and credit.

“As the sole manufacturer of dollars, whose debt is denominated in dollars, the U.S. government can never become insolvent, i.e. unable to pay its bills. In this sense, the government is not dependent on credit markets to remain operational.”

– St. Louis Fed, in their publication titled “Why Health Care Matters and the Current Debt Does Not”

During 1992–2020, the USA had low and stable #inflation.

Despite massive federal deficit spending, the Fed met its 2% inflation target (or missed below it) for most of this era.

How come? There were no serious shortage of resources. (Thanks to: no cold war, globalization, bad working conditions, stable commodity supply, increase of greenhouse effect.)