NSmolenskiFan on Nostr: We talk a lot about the Federal Government’s sovereign privilege to print money to ...

We talk a lot about the Federal Government’s sovereign privilege to print money to pay off debt. (For this reason, many believe government debt doesn’t matter.)

State and local governments do not have this privilege.

Government dysfunction is often easier to see at the state and local levels for this reason.

At the end of the day, collateral—things of actual value—backstops the whole debt system. The productivity of citizens is the ultimate collateral.