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0 sats \ 5 replies \ @SwapMarket 18 Mar \ parent \ on: MMTers Vindicated by Musk — OOPS! econ
In our current fiat money system, the Federal Reserve creates new base money when it buys assets by writing checks on itself.
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yes, new money is new debt. so it is accounted for. creating out of thin air, like what doge presumably has found, would leave no trace.
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It doesn't sound like this is without a trace exactly. They're supposedly creating new money to buy stuff. Is there no record of the purchases?
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I have no idea what Musk is saying by "computers send money out of nothing". payments are sent by banks to banks, via correspondent relationships. each transaction is double booked by sender and receiver. DoD etc are not banks. payments are not emails. there were fraudulent "advices of payments" in Russia in the nineties, created by newly founded fake banks with no capital in shitholes like Chechnya, but those were quickly identified.
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Doesn't the Treasury make payments?
One of the other issues DOGE has brought up is payments being made from the Treasury to unknown individuals for unknown reasons, because those fields were not required in the system.
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