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it was to bring the accounting models of the firm into macroeconomics

If only it did!

On the national balance sheet, there is no National Equity, only a National Debt.

The balance sheet shows the debt: but it doesn't show the productive assets it paid for - because the only "productive" assets are - by definition - in the private sector....

The whole concept of National Debt is insane. While individual countries may - through fortune or force - be able to repay their own National Debt, across the entire system, how can National Debts ever be repaid?

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Wed Jul 15th, 2009 at 05:26:32 AM EST
[ Parent ]
Can all household and firm debts be paid off at once, either?

The peak-to-trough part of the business cycle is an outlier. Carnot would have died laughing.
by Migeru (migeru at eurotrib dot com) on Wed Jul 15th, 2009 at 05:31:01 AM EST
[ Parent ]
Of course not.

Paying off debt destroys money. But in order to repay it, new credit=debt=money has to be created.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Wed Jul 15th, 2009 at 05:34:54 AM EST
[ Parent ]
Not at one time ... they can of course be paid off over time, to the extent that net private sector assets consist of public debt.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Thu Jul 16th, 2009 at 03:38:48 PM EST
[ Parent ]

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