alt Hacker NewsDonating to reduce the government debt is such a wildly dumb thing to exist. The US is currency sovereign! It has no risk of default on any debt denominated in USD!
The only reason a site like this exists is for politicians to distract from the fact that the budget of a nation with currency sovereignty does not actually have to raise revenues with taxes in order to spend money on services (and thus, be an excuse to cut services).
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Yeah donating for the debt is equivalent to literally burning money. The us’s biggest debt buyer is the US fed reserve. Bonds offered to foreign buyers absorbs loose worldwide cash. The supply of dollars is always less than demand because petroleum must be traded in dollars. And demand exceeds supply because IMF loans are denominated in dollars, plus interest, meaning that demand perpetually keeps going up because the interest keeps rising, simply because the clock ticks.
So what is the point of the debt? To convince govt should not be too big nor suck up to many of the worldwide human capital resources.
> The only reason a site like this exists is for politicians to distract from the fact that the budget of a nation with currency sovereignty does not actually have to raise revenues with taxes in order to spend money on services (and thus, be an excuse to cut services).
This is not a mainstream view. This _is_ a view of MMT, which is rejected by the majority of current economists, and this context is probably important to people seeing this when it’s just presented as a well known fact
> In a 2019 survey of top U.S. economists not a single respondent agreed with the basic aspects of MMT
https://en.wikipedia.org/wiki/Modern_Monetary_Theory