bignoseMay 28, 2025

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
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 threadbignose

@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

May 29, 2025 at 5:28amWeb
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