• 2 Posts
  • 487 Comments
Joined 1 year ago
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Cake day: June 9th, 2023

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  • Reddit by far was a better experience; more content, better moderation, less negativity.

    I’m still here on Lemmy, though, in hope of it getting better (and it definitely scratches the same itch as Reddit without the corporate arrogance).

    That said, even though it annoys me, I do find myself getting exposed to a wider array of opinions on Lemmy that I just never saw on Reddit. And while I disagree with a lot of it it’s probably healthier for things to be that way. The tankies, though … so many tankies.


  • sunbeam60@lemmy.onetoMemes@lemmy.mlthe debt
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    20 days ago

    <giggle.gif>

    Not really. They’ve got a version of the euro, called kroners, which allows Danes to believe they have their own currency. They are locked into an exchange rate band (extremely tight) which means the Danish central bank has to follow every decision the ECB takes within minutes). And this makes complete sense, in that it’s a compromise that’s edible by voters (maintaining the illusion that Denmark didn’t adopt the euro) and edible by business (allowing businesses in Denmark to participate fully in the common market).

    And that’s one of the reasons Denmark has such small national debt and runs a government surplus - they can’t really invent new money because it would break the bond with the euro. So the Danish budget is sort of a “household budget” in that in contrast to, say, Sweden, they cannot create money (meaningfully) and the books have to balance (which they do; lots of oil, Novo Nordisk, Maersk, Vestas and a few other big international plays who still pay a majority of their tax in Denmark obviously helps a lot).


  • sunbeam60@lemmy.onetoMemes@lemmy.mlthe debt
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    19 days ago

    Yes more or less, that is indeed how the central bank creates money most of the time; the government creates a piece of paper that says “IOU 100k and I’ll pay you 5% interest on it for 20 years and then I’ll return your original 100k to you in 20 years” (that’s a bond), which they sell on the open market, at auction (where the variable element is the interest rate someone is willing to accept). When the central bank wishes to increase the money supply they buy government bonds on the open market (ie from other holders, rarely from the government directly) by materialising money out of thin air.

    When they wish to shrink the money supply they sell their government bonds and destroys the money that they receive from the sale.


  • sunbeam60@lemmy.onetoMemes@lemmy.mlthe debt
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    21 days ago

    Does your mom have debt that she pays on time? Is her “doing everything right” visible to credit scoring agencies and aligned what statistic says about good borrowing customers?

    Credit score doesn’t mean “runs a good personal economy” it means “likely to pay their loans on time, consistently, based on statistics that are observable”.


  • sunbeam60@lemmy.onetoMemes@lemmy.mlthe debt
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    21 days ago

    No, if anything it shows capitalism is working. When you can increase or tighten money supply (ie when you can print and shred money) debt isn’t what you think it is. A state with money issuance powers is not a household.

    I can thoroughly recommend “The Deficit Myth” book by Stephanie Kelton, if you wish to understand modern monetary policy better.

    Or watch the film Finding the Money: https://youtu.be/3HRgsYSLOYw?si=g_CgqMWtC7oBCkGn

    And to answer your specific question, there are countries with very low debt, but that’s usually due to either not being able to “borrow” money (again, borrowing doesn’t always mean what we would think as borrowing when you can issue your own money), being locked to another currency (Denmark is a great example - amazing economy and locked to the euro) or having a large generation of wealth (typically oil). Larger countries can issue debt more easily.