This gives me a SCATHINGLY BRILLIANT idea on how to solve our OWN problem with National Debt:
We just print ObamaBills during his term of office, that can be used to pay for everything from health care to education to food stamps -- any government-run entitlement program. Legal tender, as my sainted Grandmother used to say, "everywhere but the bank!" Once he retires, we can retire the Monopoly money, and sell it on E-bay as a collectible.
One of the ironies I appreciate about "overlapping generation models" is that if you know a currency is going to end, you know that in the month before it goes out of circulation, no one will accept it. Knowing that, no one will accept it two months before because they won't be able to spend it the next month. Knowing that, no one will accept it three months before, and so on. So no one will accept money they know is going to go out of circulation.
What this doesn't explain, and I consider a delightful paradox I hope to investigate someday, is why economists accept dollars. At some point, the sun will go nova and all life on the world will surely cease to exist based on all scientific principles we understand. Even if we were to hubristically believe the US and its current currency will last indefinitely, the world won't. So there's a definite end date. Knowing that, why do economists use cash? We ought to know better!
Yesterday we saw a 0 Rupee bill. How about $100,000,000,000,000 today for comparison?
This gives me a SCATHINGLY BRILLIANT idea on how to solve our OWN problem with National Debt:
ReplyDeleteWe just print ObamaBills during his term of office, that can be used to pay for everything from health care to education to food stamps -- any government-run entitlement program. Legal tender, as my sainted Grandmother used to say, "everywhere but the bank!" Once he retires, we can retire the Monopoly money, and sell it on E-bay as a collectible.
One of the ironies I appreciate about "overlapping generation models" is that if you know a currency is going to end, you know that in the month before it goes out of circulation, no one will accept it. Knowing that, no one will accept it two months before because they won't be able to spend it the next month. Knowing that, no one will accept it three months before, and so on. So no one will accept money they know is going to go out of circulation.
ReplyDeleteWhat this doesn't explain, and I consider a delightful paradox I hope to investigate someday, is why economists accept dollars. At some point, the sun will go nova and all life on the world will surely cease to exist based on all scientific principles we understand. Even if we were to hubristically believe the US and its current currency will last indefinitely, the world won't. So there's a definite end date. Knowing that, why do economists use cash? We ought to know better!