re: #405 000G

You stated that all government spending stays in the economy, as if “the economy

Actually, I didn’t.

was some sort of closed energy system and the conservation of money being spent was like the conservation of work in the first law of thermodynamics.

Nope. Nothing so grand. I was pointing out that right-wing propaganda pretends that all government spending vanishes, when it doesn’t. I wasn’t making any point like “So we can spend as much as we like with no consequences”. You just inferred all that, for some reason.

My point was that it is not, that property actually gets devalued through crisis events (like hyper-inflation, deflation, debt restructuring, currency reform, etc.), and that crisis events can very well get triggered by excessive spending through excessive spending requiring excessive debt for deficit financing purposes.

Yep. If you spend so much you need to borrow so much that it turns into a crisis, then there are going to be huge problems. Perfectly okay point. Had nothing to do with what I was talking about.