tomjune
If central government cut local authority budgets by, say, 10%, why does the local authority not simply create that amount in the form of 'local money' which it uses to pay its workers (90% national currency, 10% local money) and which would be accepted by local businesses and which those businesses can use to pay 10% of their business tax?
4 Answers
Bob/PKB
The thing is, when money is printed and sold to a government, it is supposed to be paid for, with the same currency, including payment of interest. Since the interest money isn't printed, there's no way we can pay the Federal Reserve for all the money we owe. It doesn't exist. Now, add a new currency with nothing of collateral value to back it, and you've a whole lot of nothing.
| 9 years ago. Rating: 2 | |
clu
I wish I could print my own money! I would have a BALL!
| 9 years ago. Rating: 2 | |
robertgrist
williamtheman
