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      I think that a lot of what you are saying here is wrong.

      Only USA has the reserve currency status and that gives USA the ability to print money and while ever the rest of the world continues to accept the USD and to have faith in USA to maintain its status as leader state and reserve currency holder then USA can seemingly run up as much national debt as it pleases but this is not the case for other nations. The reason Japan is such a 'widow maker' is because the Japanese are a conquered protectorate of the USA and as such they are protected by USA controlled ratings agencies and by the rest of the Bretton Woods analogues that thew USA put in place to dominate the world after WW2 ( USA did not win WW2 by the way, they were just the strongest ally left standing due to the fact that they entered the war against the Nazi late and allowed Russia and the allies to do all the hard fighting before swooping in and claiming that we would all be speaking German if not for them ). So what do you think happens to nations that are not protected by the USA and their credit rating agencies and Bretton Woods institutions? What happens if a nation like Brazil overspends? USA ratings agencies and Bretton Woods systems will say that Brazilian debt is not a good investment wont they? And Brazil will be forced to take a loan from IMF that makes debt slaves of the Brazilian people. Even a nation like Australia cannot just run up ridiculous amounts of debt through public spending and then just print our way out of it and this was the case long before USA controlled reserve currency status - see the episode in history when NSW Premier Jack Lang withdrew all of NSWs money from the bank and hid it so that the English could not get their hands on it. The Australian economy relies on capital inflows you see. Our money isnt worth a thing if the controller of reserve status says that it isnt and this is the case with all nations apart from USA. National debt can only be described as 'savings' so long as rating agencies consider the debt to be safe. The reason US debt is safe is not because of your fantastic economy - the reason US debt is considered to be safe is because the USD and US debt is backed by the US military. If someone threatens the status of the USA and its reserve currency status, like Iraq selling oil for food or Euro, or Libya threatening the same and a gold backed African currency, then USA will invade them. If a nation does not do what USA tells them to do then USA will use military hard power to sanction and isolate the rebel nations - or USA will overthrow that government and install an 'NTC' that bows to America. The USD and US debt and the US bretton Woods systems are backed by the US military. But even so, a nation like Australia must have competent elites that are capable of managing their populations because it is the 'taxpayer' that backs the loans that are given to these elites to fund our governments that have been put into deficit. Government bonds are backed by the 'taxpayer' and if elites allow nationalists that want to nationalize things left right and centre then they will not get any loans from the IMF will they? No.

      You are on the right track but you need to do a lot more reading and thinking before you understand how the world works. And I think you need to be a bit less naive/trusting.

      Another thing is that governments can also fund themselves by bring in revenue from state owned enterprises. As you see with China this works very very well and it had always worked well in pretty much all non-US western nations up until the 1990s when the fall of the USSR led to a privatization bonanza. Pretty much all utilities were owned by the state and they brought in a great amount of revenue but Americanization has changed all of that for the most part. Modern capitalist thinking is that governments and central planning do not work ( they do is not sabotaged by capitalist privatization fanatics ) and that private competition brings down costs - but it becomes clearer with each passing day that this is utter nonsense - privatization only results in monopolized markets and price fixing collusion - not a better deal for consumers. Just look at the US health system - sure it is great for the wealthy but for everyone else it is terrible and costs a fortune. Americanization has led us away from single payer systems that always worked well and before long we will all have disasters of health systems like you have in USA than are run and controlled by insurance companies for profit. But yeah, governments can also be funded with revenue from SOEs - not just taxes.

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