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61

This modern theory is far from commonly accepted. One comment is that printing itself out of debt may be possible for country that is a global reserve currency, but only as long as it is a global reserve currency. This status changes over time. If Japan were to print, investors would demand more interest for government and private debt. That's known as a ...


55

Mostly because Japan doesn't actually have deflation at the moment (although it may have between 1998 and 2008). In the last ten years, Japan's inflation rate has been as high as 3.7%. Another way of saying this may be that they already did fix their problem. Japan had deflation, primarily between 1998 and 2008 with occasional returns since. But ...


48

Many countries adopt some variant of solution (3): Putting restrictions to the usage of wealth in political situations. This solution is used in many western states, but is of course a violation of free speech and the possibility to exercise political influence at will. The assumption "of course this is a violation of free speech" is not universally ...


45

It's mainly because there will always be people who do not have credit cards and still uses cash, for example, 96% in Sweden in the article that you cited. 4% is still a relatively huge number. This article by BBC addresses Sweden, noting that not everyone welcomes the move: Like the Netherlands and its Scandinavian neighbours, Sweden is among the front-...


43

I reject your basic hypothesis. You're conflating influence with votes. It is not common to buy votes. We have secret ballots specifically to make this hard and laws to make it illegal. That's not to say it doesn't happen but it is not encouraged in any democratic society. However, influencing voters is encouraged. This has been true since the dawn of ...


39

The case of George Floyd is that he was accused of passing a counterfeit $20 Floyd allegedly used a counterfeit bill to buy cigarettes at the convenience store last week. The clerk reported it to police, a step that management described as store policy in Facebook posts. In the US, most jurisdictions permit 911 calls for any active crime, regardless of ...


36

Wow, so my understanding was way out of date. Here's a history of taxation and gambling in the UK, which includes what I though was still the case; The first shops opened in 1961 but under the condition that a new levy was to be charged at 6.75% to bookmakers. Bookies passed this on to punters in the form of a 9% betting tax. The tax could either be paid ...


36

Bank notes have serial numbers. The mint keeps track of what's been issued, and also the quantity of notes that have been taken out of circulation and destroyed. Back accounts are another matter. In that case there's not very much "currency" involved, but instead "assets" and "liabilities". Liabilites are money owed to others: to a bank, each account is a ...


35

First of all, what does the credit rating of a country actually mean? The credit rating of a sovereign country is calculated by privately owned rating agencies using algorithms and formulas they invented themselves. Different rating agencies don't always agree on the rating of every country. These ratings are supposed to serve as a guideline for ...


33

There's many downsides and reasons. Some areas have no reliable electricity. You need electricity to run CC transactions. Some areas have no reliable telecom infrastructure. You need a telecom connection to the bank for CC reader to function even if you are blessed enough with 24x7 electricity. You need to have a bank you'd trust (preferably local). If you ...


28

This requirement is usually in place to combat money laundering and tax evasion. The Financial Action Task Force on Money Laundering, an international organization, has a series of recommendations for countries to fight money laundering, including Recommendation 32—"Cash Couriers": Countries should have measures in place to detect the physical cross-...


26

The fact that officers showed up promptly in person doesn't necessarily mean that they considered it an emergency. It means that they had the people available to respond and prioritized doing so over those officers' other duties. Officers also often respond to other things that I wouldn't consider an emergency, like shoplifting, loitering, or panhandling. ...


26

This has happened a few times before, and is usually a rather extreme measure used to promote the use of, and trust in, local currency, as opposed to transactions being conducted using a more stable foreign currency, most often USD. Indonesia In 2011, Indonesia banned foreign currencies being used in domestic cash transactions: On 28 June 2011, the ...


25

During and after the financial crisis a number of governments actually did so, through a programme called "Quantitative Easing". Their central banks "printed" money (actually, incremented their own balance with themselves) and then used this money to buy corporate bonds (i.e. they lent the newly created money to industry). Because the newly created money was ...


24

Blockchain-based cryptocurrencies like Bitcoin aren't actually that untraceable, because the transfer history of every wallet is public. When cryptocurrencies ever become economically relevant, you can expect law enforcement to put all those currently hyped big data analysis and machine learning technologies to use and data-mine the blockchains for ...


22

Yes, of course. Most European countries, especially Nordic ones, have high tax rates for high income, and it works perfectly. What are the repercussions of very high tax rates on high earners? Almost none. Although many get public tantrum on every tax increase and declare immediately going abroad, they generally stay and pay that taxes. Poor countries (...


22

These are considered cards issued by three party schemes, from europa.eu: Credit and debit cards issued by three party schemes (such as American Express and Diners Club), and business or corporate credit cards, where your employer is billed instead of you, are not covered by EU rules on payment services, and you can still be charged extra for using these ...


20

Historically many countries had property or wealth restrictions for voting, which satisfies the letter of the question (one vote is more than zero) but perhaps not its intent. That said, a number of countries also practiced plural voting, where some electors could vote more than once. For example: Belgium: from 1894-1919, some electors got up to two ...


20

The most obvious politician's argument against funding research in pure mathematics is that it costs money and it isn't useful. I'm aware that there is a point of view that holds that the state should not fund research of any kind, but it is very alien to my milieu, so I won't presume to explain it. As I'm closer to mathematicians than to politicians, the ...


20

I wonder that people did not mention the most dangerous reason. If there is no cash and every transaction need an account, you can harass, threaten or even bankrupt political opponents. If every good must be bought with electronic money and the government forces the bank to lock the account, even friends and family cannot give you money. So you either must ...


18

The "divorce bill" effectively represents a one-time payment for the UK's existing liabilities (pensions, payments previously agreed but not yet paid) and a share of the structural costs involved in the withdrawal (e.g. the cost of moving UK based EU institutions elsewhere). Some of these costs may be cancelled against the value of the assets and credits ...


18

The explanation is somewhat simple. Regulation (EU) 2015/751 of 29 April 2015, which capped the interchange fees for four-party schemes like Visa and Mastercard, was according to a World Bank presentation, specifically designed to Put an end to the race between MasterCard and Visa for higher interchange fees (reverse competition) and Introduce ...


17

Currency controls or foreign exchange controls have happened time and again in history, taking different forms. At the extreme end, all foreign currency must be surrendered to the government at the official exchange rate, which might differ from the market rate. The GDR banned the possession of Western currency until the 1970s. I'm not sure when the Soviet ...


16

Soviet Union In USSR, any dealings with foreign currency without a special permit (in essence, allowing exporters to get paid in currency and immediately trade them for roubles at the central bank and allowing outgoing travelers to get some currency for expenses, with any remainder to be traded back upon return) was a crime. (see RSSR Criminal Code article ...


14

At most, the unexplained pay gap is between 4.8% and 7.1% The 77% figure is often criticized because it is a raw aggregate based on several assumptions. For example, women tend to work fewer hours, in lower paying professions, with less work experience. The 77% figure for median full-time woman, does not take any of those differences into account. A study ...


14

You as an individual can use paypal today, if you don't mind them taking their substantial percentage, subject to their judgment on disputes, and you don't mind giving them permission to raid your bank account when they see fit if a judgment goes against you. Hopefully, a government would replace that with a less expensive model... governments being known ...


13

First some history. The US did not always have a monetary policy. It has not always had a strong currency. It defaulted in the Revolutionary War and in the War of 1812 and on the Bretton Woods gold standard agreement. Sayeth Wiki: With the enactment of the National Banking Act of 1863, during the American Civil War and its later versions that taxed states' ...


13

The main reason for a common currency was to remove the business risk which came from currency fluctuations. When a company in country A buys goods or services from a company in country B, they need to obtain some currency B to pay the bill. But what happens when the exchange rate between currency A and currency B suddenly changes and currency B is a lot ...


13

There are primarily two reasons: competitiveness and corruption. Competitiveness You did hit the nail on the head - part of the reason is competitiveness. Public offices compete with private jobs for the same people. In order for public office to be an attractive prospect, the salary needs to be competitive with the kinds of jobs they would be able to ...


13

There's no loan here. What is happening is a buyback to inject money into the system (emphasis mine) Today the Fed announced a $1.5 trillion liquidity provision to the interbank lending market — primarily in the form of “repurchase agreements.” The interbank lending market comprises the federal-funds market (in which the Fed actively participates on a ...


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