bignose

I want government that funds good services for everyone, *without* distraction by talking about taxes.

A sovereign currency issuer (#Canada, #Australia, #Japan, #UK, etc.) creates money every time they pass a law to fund something.

It doesn't come from taxes, they *categorically do not* need to "find the money" beforehand, they control the currency so they just issue it. They can issue it any time they want to, to pay for whatever services people need. That's it.

Demand our politicians pay for services and *tell them to shut up* if they try pointing to taxes. Just fund good services! With the money creation system under government control! Now!

https://socialjusticeaustralia.com.au/currency-sovereignty-understanding/

@stephanie

Currency Sovereignty: Understanding Australia's Economy

Currency sovereignty, understanding it, and how Australia’s economic system can support social reform and public welfare.

Social Justice Australia
May 28, 2025 at 9:54pmWeb
Show threadmgb 🇨🇦 No U.S. for me!May 28, 2025
@bignose @stephanie Doesn’t work that way — everyone would be bankrupt if it did!
Show threadbignoseMay 29, 2025

Of course, I *also* want government to tax wealth from the wealthy. It's necessary to tackle #inequality, by reducing their outsized spending (= political) power.

That's a project which can and should continue.

But that's not how our country's government funds anything. Sovereign currency issuer pays for its spending *in the act of spending*: sign the bill into law, now the money exists, go do what the law says to do with that money.

https://www.thecrimson.com/column/a-time-for-new-ideas/article/2020/3/18/gilbert-myth-of-taxpayer-money/

Stop pretending we are waiting for the wealthy private hoarder's money. They just need to *get out of the way*.

Fund social good without them, you control the money spigot, you spineless politicians.

@stephanie

The Myth of Taxpayer Money | Opinion | The Harvard Crimson

If we are serious about getting things done — universal healthcare, basic income, solving climate change — we need to reject the taxpayer money myth in its entirety.

Show threadAmgineMay 29, 2025

@bignose @stephanie

I am sure that is how it looks, but in fact that is not how it happens. #FiatCurrency is 'created' by an issuer purchasing financial assets or lending money to a financial institution.

If they could simply 'print money', as you suggest, they would never have need to borrow. But they cannot, because no one would accept the scrip.

Instead, via the Bank for International Settlements (#BIS) - owned by central banks - they set goals & strategies to achieve red book values.

Show threadbignoseMay 29, 2025

@Amgine
> If [the sovereign issuer of the currency] could simply 'print money', as you suggest, they would never have need to borrow.

Yes, that's correct. Any sovereign issuer of currency by definition has no need to borrow before issuing that currency.

> no one would accept the scrip.

People accept the Canadian dollar because they need it to pay Canadian taxes; if they refuse, the Canadian government will eventually lock them in a box.

So because most people in Canada need various amounts of Canadian dollars for this purpose, the Canadian government effectively sets the price based on how much tax they levy, and how much currency they issue for specific purposes: spending bills that, for example, employ people to do labour.

If people who need the Canadian dollar can trade eight hours of labour for 100 CAD, then that contributes to determining the value of the CAD.

So, Canadian government has no need to borrow to issue CAD, and the CAD they issue still has value.

@stephanie

Show threadAmgineMay 29, 2025

@bignose @stephanie

I guess we will need to agree to disagree. Imo, if Canada had no need of debt **it would not have debt**. Because instead of using debt to introduce currency, it could purchase financial instruments. Yet, it has debt. Because it has debt, it must have a viable currency with which to pay it. Its scrip must have recognized value.

But I will commend to you these Wikipedia articles on the topic:

https://en.wikipedia.org/wiki/Fiat_money#Money_creation_and_regulation

https://en.wikipedia.org/wiki/Bank_for_International_Settlements#Committee_on_Payments_and_Market_Infrastructure ←NB: Bank of Canada membership

Fiat money - Wikipedia

Show threadStéphane Tremblay 🇨🇦🇺🇦🍉🐧🩵🤍🩷May 29, 2025
@bignose @stephanie Absolutely! How many times have we heard governments complain about how much taxpayer money they spend on public medical services on the one hand, but then give away millions in subsidies to private companies like it's nothing.