this post was submitted on 13 Nov 2024
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Elon Musk wants to radically reshape who controls America’s money supply (edition.cnn.com)
submitted 3 days ago by [email protected] to c/[email protected]
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Elon Musk, a key Trump backer who is expected to have considerable sway in helping shape Trump’s policies, included a “100” emoji while resharing Republican Sen. Mike Lee of Utah’s post on X calling for abolishing the Fed.

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[–] [email protected] -5 points 3 days ago (1 children)

DO IT!

Seize The Fed and abolish all Federal taxes!

The Federal Government does not need tax revenue to provide services. Federal taxes just delete money in a targeted way. When the Federal Government wants to buy something, it creates the currency it spends. The balance of interest rates and Federal taxes determines the speed at which the overall supply of currency grows - either lever can be pulled to moderate inflation. Taxes make people poorer, reducing demand. High interest rates slow the growth of businesses that need to take out loans from a bank. With lower Federal taxes putting more money in people's pockets, successful businesses will be less dependent on bank loans: win-win.

Although, the clowns of the Republican circus would probably pull the wrong lever, reducing interest rates, which would necessitate increasing either taxes or inflation, leading to stagflation and recession.

[–] [email protected] 2 points 3 days ago (1 children)

I kinda get what you are saying, are there examples of this system being implemented? Seems like it could spiral out of control if not VERY tightly regulated/maintained.