Comments on: Public Debt Is Economic Nonsense

By: pasbaxo

pasbaxo — Tue, 07 Jul 2015 17:32:45 +0000

Central Bank reformed to public legal person under Government as public legal person and as presidency of Central Bank could prevent banknotes ownership of Central bank and could consequently prevent necessity to outlending financial furnishment to Government still bowing under debts. No complicated study is necessary to realize such or a comparable arrangement . The government could take distribution of financial means to deficient governments’ and product enterprises’ accounts in its own hand, in a managing function. Ownership to be recognized to addressees. Needed monetary articles to be voted by parliament.

By: M.M. van Wijck

M.M. van Wijck — Mon, 06 Jul 2015 08:59:03 +0000

Awaiting expiring of debts could burst the bomb. Vanishment is not a usual term. Only interest payment could not be valuated as relievance of the total sum. Expiring could mean: no more possiblitiy to borrow
as countermeasure whereas no relievance is showed (initial cause of crisis).
Besides many Central Banks could create banknotes without creating debts to themselves , the notes or their account value possibly to be outlended to other i.c. foreign banks , the latters’ Central Bank being not able to print backless and debtsless banknotes themselves as consequence of a lack in their monetary system. ECB is an example : their obstinate refusal to relieve governments’ debts by debtless and backless banknote emittence and permitted reproduction appears ridiculous in the light of another monetary policy legalized and practicized by other states cq Central Banks cq banks. It leads to heavy backpayance loads to the debtor whereas the claimer has only to bear the paper- and print costs.

By: Gerson P. Lima

Gerson P. Lima — Tue, 30 Jun 2015 21:03:39 +0000

Sorry pasbaxo, but I still cannot see how your comments are related to my work. Clearly, my point is that under normal conditions indebted governments act in contradiction to the accounting logical “practical sense” that nobody – especially if already indebted – can eternally spend more than the earnings. “Of course” such an attitude imparts to public debt an explosive tendency. Of course the scientific challenge that arises is falsifying this conclusion, what in this case requires the demonstration – and not simply a discourse on hypotheses – that normally public debt generates tax receipts increases that are sufficient to pay the due interests. Of course you may alternatively collect and present data showing that normally public debts the world around tend to vanish. Of course if you miss the point of conference’s papers I fear you risk proposing byzantine discussions that bring no positive contribution to an outstanding intention of redirecting the economy science to real world concerns. Of course as expected from any serious researcher I would appreciate it very much if I have any clear critical observation on my work; this is the way science progress.

By: pasbaxo

pasbaxo — Tue, 23 Jun 2015 15:28:39 +0000

Public debt is of course no economic nonsense in the practical sense ,whereas it exists more or less as particle within the total financial economic household of nearly every monetary Union. May be you mean it as a taboo subject to professional theoretical economists. The solution is not to be found by tax on the production sector,f.i. by means of product exchange tax and enterprise tax, whereas the product sector is bowing under the same problem. Induction of backless liquidities could be a solution to the relievance of debts in both sectors, if approached to receivance of liquidities appliccable to special tasks formulated via budget estimations beforehand. The row of catastrophees mentioned as nearly inevitable consequences could be sought to be prevented, not only by gradual application, but also by a more adequate position of the Minister of Finance as receiver and distributor of backless liquidities to both
sectors. Financial liquidities inflation could origin in an expressively independent position of the Central Bank as independent legal person, keeping the created money within its own finanncial sector with the bank as owner , loaner and speculator .

By: Gerson P. Lima

Gerson P. Lima — Sun, 07 Jun 2015 00:53:46 +0000

In reply to pasbaxo. Thank you for your comment pasbaxo but, sorry, I cannot see its connection to my paper. Could you please tell me how your comments are related to my work?

By: pasbaxo

pasbaxo — Sat, 06 Jun 2015 10:59:05 +0000

Quantitative Easing to governments and production companies is missing the link as long as QE amounts are created by Central Banks whereas the CB plus the underbanks are ressorting under private legal persons. The problem of ownership to new created amounts is essential to be solved in the sense of expropriation to the CB.. If not the QE money-stream will again stay in loan concept to companies to create new debt problems and as a closed treasury source to governments’s budgets.. The association from Central Bank to Policy organs like Central Governments should be linked more expressively , subjected to parliamentary voted legalization in banklaws a.o.. The Minister of Finance or the President should be linked to the Central Bank as President CB to enable QE execution via electronic multiplication of banknotes to be made appliccable to governmental purposes, like governmental budget expenditure replacing taxes to governments and loans to production companies via Miinistries of Finance and Economy. This whereas taxes and loans appeared as insufficient means to rule governments services and companies production. There is no absolute necessity to believe that
those two pillars could create a debtless system, annual balances reports revealing other financial circumstances.
Besides the lack of legal public person to the governments could mean a serious barrier to build up a trustable financial system.
Upheaval of taxes could mean an elevation of the product exchange level whereas more money is available to consumers if not obligated to pay taxes, Production companies could deliver more quality and more variety in products if subsided by redemptionfree QE amounts. Price stabilization stays condition.

By: Gerson P. Lima

Gerson P. Lima — Sat, 30 May 2015 14:28:11 +0000

Sorry pasbaxo, a correction is required: The paper intends to be a contribution to a new, real world, economic theory, but adopts currently used terminology as much as possible.

By: Gerson P. Lima

Gerson P. Lima — Sat, 30 May 2015 14:24:23 +0000

In reply to pasbaxo. The paper intends to be part of a new, real world, economic theory but uses current as much as possible.

By: Gerson P. Lima

Gerson P. Lima — Sat, 30 May 2015 14:18:31 +0000

In reply to pasbaxo. The right statement at the end of the paper is "The main conclusion is that preventing public debt explosive trend and avoiding its consequences is not an exclusive mainstream monetary concern". Actually, what has been used to uselessly attempt to tame public debt is the fiscal policy in the opposite direction.

By: pasbaxo

pasbaxo — Thu, 28 May 2015 00:20:05 +0000

NB: “GDP” in above delivered remark must be corrected in “product exchange value”.