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Pragmatic Capitalism

Practical Views on Money, Finance & Life

Figuring out how Puerto Rico’s “mess” could have been solved before it went “viral”.

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Had an understanding of how our MR actually functions these days (since all the nations of the world trade their fiat currency every day by the trillions), we would understand that deficit spending ameliorates the suffering of the people of Puerto Rico just like Detroit. Today they PR is prohibited from deficit spending since they do not control their own currency.

If that spending produced valuable assets that helped to improve the private economy, and that infrastructure spending was badly needed, then why is that not 100% beneficial?

Yet again, I submit that infrastructure spending does not actually add to our so-called national debt except by law.

“Bankruptcy prevents past mistakes from placing an intolerable burden on the future. It also enforces some measure of accountability on lenders who hand too much money to people who have no hope of paying it back.” http://www.newyorker.com/business/currency/on-puerto-rico-congress-once-again-fails-to-do-the-obvious

Show me the so-called “mistakes”? The spending would make good lives possible! The problem is that private banks and investors can never support the spending required. To make public spending on infrastructure counted as “debt” is the mistake.

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Posted by Dennis
Posted on 05/04/2016 4:06 AM
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Private answer

It definitely gets into elastic money issues. PR needs elastic money. But elastic money doesn’t presuppose it being in the form of debt, does it? That’s just how the system can to be arranged. But I have no ideas atm what could be better than debt to back it.

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Posted by MachineGhost
Answered on 05/10/2016 11:48 PM
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