QatzelOk wrote:I am very aware that micro and macro are different.
But the results of macro-bankruptcy are things like civilizational collapse and mass starvation.
There is no magic in macro-economics either. Stop pretending that the lack of transparency of our macro-money-managers means that there are tricks that can be played to pull collective solvency out of a hat.
Sure, the money-managers might survive collective bankruptcy, but none of the posters in this thread will.
Many smart-alecky posters are accusing ME of confounding micro and macro economics. But in reality, it is YOU who are confounding the survival of oligarchs with the survival of the civilizations they leech off of.
QatzelOk, I'm sorry. I don't understand you al all.
On one hand you assert that the US
will go bankrupt pretty soon; and here, on the other hand, you assert the you and all of us posters here will die when the US goes bankrupt. Why do you want to believe the experts that still believe a theory that is based on false premises? [All you need to do to end your panic is to accept that MMT is much more correct than mainstream econ. theories. Then you can just join me in my panic over ACC and overshoot.]
. . . Functionally, the main false premise that mainstream econ. uses is that the world is still on the gold standard and the US banking system still gathers depositors' money and lends it out. These are sort of 1 premise in that with a gold standard the fractional reserve banking system is a strangeness. This is not currently the case because on the gold standard the Gov. needs to get gold to spend gold, but with fiat money it spends money so the people can use it to pay their taxes and the supply of fiat money is not fixed like the supply of gold is.
It seems to me (ISTM) that you must be in a panic, because you "know" that you will die soon, because the US will go bankrupt soon. I know that I will die soon because of climate change or just old age. So, I am in a panic, and worse, mine is based on reality, while yours is based on you accepting the predictions of experts with a 98% failure rate for their predictions.
You said above that the US can't conjure money out of thin air.
Actually, everyone can do that. The problem is getting other people to accept your magic money as if it is really money. In the case of the US dollar, people already accept it as money. So, the hard part has been accomplished. The world resists the idea of not accepting dollars as real money, because the world holds dollars as assets that it depends on for the economy to function. Also, insurance comp. and pension plans the world over hold dollars as assets to pay out when the policies they have sold require payouts.
The rich of the US and the world own US bonds and corps. that hold US bonds. A total default by the US would destroy the liquid wealth of the rich. So, they help the US to keep kicking the can down the road.
This is the main reason that I do not think that the US will ever default. The 2nd reason is that I know that the US can always make its payments on its debt, because it is in dollars and the US can create dollars with key strokes on a computer, a special computer somewhere (maybe in the Fed somewhere).