| ▲ | spwa4 an hour ago | |
Strange how you complain about this for circular flows when of course the GOAT of circular flows is the money system itself govt prints money (FED) -> government -> banks -> (economy) -> tax -> government And the second "great circle" govt loans money (FED) (money that doesn't exist, which isn't a problem if you can print money) -> banks -> (economy) -> loan repayment -> money gets "unprinted"/destroyed Everything about the economy is a great circle. You will also understand after a while, if you wish for the economy to remain stable, this must be the case. You can't change it without either hyperinflation and extreme "capital flight" (between quotes because of course in that circumstances capital will run into gold or other physical resources), by either vastly overheating or stopping the economy. And yes, most instances are of the overheating kind. The only case of stopping the economy was accidental (despite many warnings), in other words, yes, it was Republicans. But last time that happened, even republicans could decide to change course. Of course, only once huge damage was done. | ||