Quote from: fivebells on September 27, 2011, 12:02:31 AM

Quote from: Iseree22 on September 26, 2011, 07:48:21 PM

Most Countries issue their own currency. If a country is able to issue its own currency why should it bother taxing the people to pay for services?? A country that issues its own currency could issue enough currency to pay for the necessary social services of that country. No Tax burden is needed to pay for the necessary public services.

This is explained very clearly in Debt: The First 5,000 Years, which I highly recommend to anyone who wants to really understand economic life (as opposed to just swallowing the prevailing theoclassical theory).

The imposition of taxes, which must be paid in government currency, is precisely what gives government currency its worth. Even if you conduct your business entirely in bitcoin, if you live in the US or are a US citizen, IRS will still want its share of your income paid in USD. This creates great demand for an object which the government is ultimately the sole provider of, which gives it a great deal of power.

Yea your right. Chartalism is the economic thought that asserts that the Government( or currency issuer) must spend before it can collect taxes. How can a state collect taxes if the currency has not been issued yet??

Quote from: Hawker on September 26, 2011, 09:56:45 PM

Quote from: Iseree22 on September 26, 2011, 09:48:57 PM

Zimbabwe and the Wiemar had to much credit........

Greece on the other hand does not print the Euro. So if you had bothered to thoroughly read the posts of this thread you would realize that what I'm talking about does not apply to Greece.

Next time, please, take a few moments to think.

Please take time to read about them. They didn't have credit - thats why they had to print money.

Why does a country need to obtain credit, if it creates its own currency???

The only issue is a possible inflation. Which is very unlikely to happen in any economy that has high unemployment. Not all money printing is inflationary. Using new money to employ people is potentially deflationary. When someone is employed then total production of goods and services increases, which is deflationary. So if the amount of goods & services created is greater than the wage it took to employ someone, then such a situation is deflationary.