Striking_Balls on Nostr: The US funded WW2 predominantly from selling war bonds., and the rest of the wars the ...
The US funded WW2 predominantly from selling war bonds., and the rest of the wars the US has conducted have been financed on central bank bonds issues. They did expand money supply, controlled it with price controls and ran up a massive debt.
But its impossible to continue to actually print money as out of control inflation will result and your currency will collapse. Like Weimar Germany, Zimbabwe, Venezuela, etc... What most people that complain about just printing fiat here in BTC-ville, is that modern governments with central banks actually do not just print money (or press a button to make more) They issue bonds that they have to repay. The US Treasury bonds (and similar in all modern countries) are issued, just like your local government does to build new roads, in order to fund the government operations when tax receipts will not cover it.
It is not as simple as how I just explained. But any government that just endlessly prints money (an asset) without recording it on their balance sheet (liability) will quickly spiral out of control financially.
But its impossible to continue to actually print money as out of control inflation will result and your currency will collapse. Like Weimar Germany, Zimbabwe, Venezuela, etc... What most people that complain about just printing fiat here in BTC-ville, is that modern governments with central banks actually do not just print money (or press a button to make more) They issue bonds that they have to repay. The US Treasury bonds (and similar in all modern countries) are issued, just like your local government does to build new roads, in order to fund the government operations when tax receipts will not cover it.
It is not as simple as how I just explained. But any government that just endlessly prints money (an asset) without recording it on their balance sheet (liability) will quickly spiral out of control financially.