Thread: How does a Country with a Made-Up Currency run out of money?

I always hear people say that the United States is broke and we might have to default on our debt because we don't have money to pay it. My question to those people is... how does a country with a made up currency run out of their made up currency?

Also, where are all these people getting our made up currency to lend us?

Originally Posted by akphidelt2007

how does a country with a made up currency run out of their made up currency?

It doesn't. What happens is people just stop wanting to play make believe one day.

Originally Posted by akphidelt2007

Also, where are all these people getting our made up currency to lend us?

Thin air. It is a fractional reserve system. Try not to think about it.

Taxation through inflation.

Originally Posted by Jebediah

It doesn't. What happens is people just stop wanting to play make believe one day.

So when do people stop wanting to play?

Thin air. It is a fractional reserve system. Try not to think about it.

It was a rhetorical question. Stop being a dick.

Originally Posted by RiseAgainst

Taxation through inflation.

What about those that aren't taxed from inflation?

Originally Posted by akphidelt2007

What about those that aren't taxed from inflation?

Everybody is taxed through the devaluation of the dollar, although some aren't bothered by it (the super wealthy). The price of everything - gas, food, goods, services - goes up and our wages stay the same, or marginally increase. This is how you (*)(*)(*)(*) a nation.

Originally Posted by RiseAgainst

Everybody is taxed through the devaluation of the dollar, although some aren't bothered by it (the super wealthy). The price of everything - gas, food, goods, services - goes up and our wages stay the same, or marginally increase. This is how you (*)(*)(*)(*) a nation.

What about the people selling those things for higher prices?

Originally Posted by akphidelt2007

What about the people selling those things for higher prices?

Those people own businesses and are probably upper middle class, at least, most likely upper class.

Mostly the poor and middle class get hurt the most.

Originally Posted by RiseAgainst

Those people own businesses and are probably upper middle class, at least, most likely upper class.

Mostly the poor and middle class get hurt the most.

So you admit some people do benefit from inflation? What about those laborers that are in high demand that can get higher wages because companies have more money to pay them?

Originally Posted by akphidelt2007

So you admit some people do benefit from inflation? What about those laborers that are in high demand that can get higher wages because companies have more money to pay them?

I see laborers keeping mainly the same wages while the cost of living (through inflation) goes up.

I can't imagine what fictional world you're living in.