While the German government is indeed restricted by the ECB, I assure you that the Bundesbank is indeed an issuer of Euro. It does not spend money redeemed through taxation, because tax redemption is the fulfilment of debt created at the time the currency was issued. Money collected by the currency issuer is literally being removed from the economy. It can't pay for new spending.

The things that are exceptionally rare, and if you actually look into them are not actually cases of debt defaults? Most of them are things like they just changed the term of the debt, or they restructured it. The list that is peddled as sovereign debt defaults includes 1970s Cambodia where they literally tried to abolish money.

Barter isn't an archaic system. There's no anthropological evidence that barter was ever used as a system of exchange. It may have been used between individuals, but larger economic systems have always run on gift exchange, which eventually evolved to debt exchange. The monetary system we operate in today is as much a debt exchange as monetary systems going back 5,000 years.

I felt like that too about teaching at some point. I was a teacher for about 11years. You can work as a supply teacher- you don't have to make notes, prepare reports or anynof such things. Though it comes with financial implications.

Taxes do not funding federal government spending in the Eurozone. Money is still created by central banks, it's just the national central banks also defer to the ECB. If you read a paper published earlier this year by Dirk Ehnts and Randall Wray it goes into this in more detail. In fact national central banks in the Eurozone are still the currency issuers, just now they issue the Euro instead of Francs or Deutschmarks. The issue for nations in the Eurozone is not that taxes fund spending.. they don't. It's that those nations have a lower degree of monetary sovereignty. They are bound by rules enforced by an external authority, and have less control over their own economy. For more on that I'd suggest reading Peter Mair. He particularly highlights the case of Ireland's response to the GFC, and how the ECB constrained Ireland's democracy due to fiscal rules. Many southern-European nations have also faced similar challenges due to restrictions placed on them by the ECB.

@@PEGSInstitute Thanks for your prompt and detailed reply. If I understand you correctly, the governments (via their central banks) Eurozone members can no longer create new money, but they can still destroy it via taxation? They've effectively given up the sovereignty to create their own currency to the ECB, thereby limiting their own fiscal spending? However, their commercial banks are unaffected, as they still create new money via loans.

Where do the "private central banks" get the money to loan to the federal government? Most private entities don't have the power to create new units of a national currency at will, so who imbues the central banks with that power?

@@PEGSInstitute The assets they own is leverage against the government as they can be sold to foreign entities for a profit in the currency that they prefer. This creates a national security concern and is why the U.S treasury has a policy of always paying out national debt holders first and foremost and covering investments in Treasury Bonds. And this has happened throughout history in many instances. The U.S prints out bonds to these people, they agree on paper that they'll put up their assets as secured loans to the government on the governments good will and trust that they will guarantee a repayment on those bonds, they will pay a guaranteed interest rate, and thus the government is able to acquire new funds not allocated by congress in the federal budget, or can be put into projections on the next budget.

@@theangrycanuck8331 You're almost there. So when the Treasury issues bonds, do they borrow those from somewhere, or do they just create them out of nothing? And what about how the fed owns 16% of Treasury debt? Did the fed have to go earn the dollars they used to buy those securities from the private market, or did they simply create new dollars as needed? And when the government pays interest on the bond to the Fed, does the Fed save that money, or is it simply one side of a balance sheet being cancelled out by the other side?

@@PEGSInstitute They allocate the funds to be printed and circulated in some cases, in other cases they add in the funds to corresponding budgets and then release tender upon payment.

@@PEGSInstitute Everything is on the basis of growth. The government expects growth in each quarter to cover some of the interest. As the economy grows, they have more trust and good will as well as investments, assets to leverage in negotiating with the private sector. They also use their legislative powers to give tax credits where needed and increase taxes and tarrigs where they believe they can to raise capital on returns. If your country operated soley on currency out of thin air, why would I sell you good and services to import? Your currency has no value domestically, and if the rest of the world thinks like me, what good is your currency globally? What guarantees the USD? There's some gold that backs it though not enough and there hasn't been a proper audit in decades. The U.S military might and NATO alliance is another form of insurance that backs the USD, and the financial systems put in place that's run out of New York and London that over see multi national trade securities and can impose sanctions. With two out of three no longer having any signicant power, the US military and financial system, we see BRICS forming, the Yuan/RMB expanding and the USD being dropped. That's the literal outcome for a currency with no value based off of printing. However on a domestic scale, it's far worse. The GDP and PPP of communities is directly affected by the reintroduction of large quantities of dollars returning. This devalues US Treasury bonds, causing the good faith that the private sector to rely on to falter, causing calls in bonds, causing massive debt and loss on the part of the lenders as the US can do a currency and debt wipe; however now you'll have civil issues where people will sell assets and leave or move to other countries and bring assets with them due to bad transactional history and lack of trust in the government.

Strongly recommend this paper about the mechanisms of the ECB www.tandfonline.com/doi/full/10.1080/09538259.2023.2298448

@@PEGSInstitute Thanks!!!

Because the government is run by neoliberals who want to privatise everything.

@@PEGSInstitute You nailed it. That's been their motive since they took power.

You should look into the work of Fadhel Kaboub. He is African and has some fantastic contributions in this area.

@@PEGSInstitute thank you!

It is, and always has been kzbin.info/www/bejne/aXrLqYyJftKmjZo

@@PEGSInstitute your own definition is: a medium of exchange, yes? Who is a gold eagle a debt to? It's as if you forgot that some mediums of exchange have intrinsic value as goods. Please explain if I'm missing something about the non-debt currency, money.

Our sources are in the description of each video if the short videos don't provide enough detail.

@@PEGSInstitute I quoted your definition of money, then gave you an example of a common medium of exchange which has an intrinsic value beyond only being a currency. Referring me to another claim isn't proof. Please explain how gold coinage is debt.

I assure you that no length of KZbin comment will be as convincing as the anthropological evidence mitpressbookstore.mit.edu/book/9781612199337