TechnoAnomie [he/him, any]

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Joined 8 months ago
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Cake day: May 16th, 2024

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  • Double entry book keeping that sums to zero. You can find a better description, but it's something like this:

    Government spends first, telling treasury to increase numbers in appropriate accounts. The treasury "withdraws" money from the Fed, which is also the state, creating a deposit from the left pocket to the right, and from the right pocked to the left. When taxes are payed, the treasury can "return" the money, wiping the spending from circulation. If the Fed sells debt, it can only be payed with money on the same currency that was already spent into existence. Loaning also creates money in the form of extra debt, but that debt can only be payed if it is spent into existence.