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The Forum > General Discussion > Dr Michael Hudson & Keiser.

Dr Michael Hudson & Keiser.

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Individual and Pericles, if we pressured the RBA just to create inflationary money, this would save individuals an average of almost $5000 pa in tax.Could not this money be also used to create debt free infrastructure?
Posted by Arjay, Monday, 27 May 2013 6:21:47 PM
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Only a couple of problems with that suggestion, Arjay.

>>...if we pressured the RBA just to create inflationary money, this would save individuals an average of almost $5000 pa in tax.Could not this money be also used to create debt free infrastructure?<<

The Reserve Bank does not "create" money. It is the Government that issues the instruments that increase or decrease the volume of money in the economy. The Reserve Bank merely advises them on the shape of the economy, and the various pressures it might be under, making recommendations along the way. It does sort-of make its own decisions on interest rates, but those are also heavily market-driven, and nothing to do with "creating" money.

Apart from that, I'd be interested to hear how this would "save" money for individuals, and how it would lead to a "debt free infrastructure", neither of which is immediately obvious.
Posted by Pericles, Tuesday, 28 May 2013 12:46:59 PM
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