Australian Politics Forum - A wealth Tax Should Be Introduced In Australia

Jasin Gold Member Offline Posts: 58510 Gender:	Re: A wealth Tax Should Be Introduced In Australia Reply #315 - Sep 28^th, 2026 at 2:36pm Didn't Obummer Obama print money, of which a 10% interest fee was charged from the total amount printed?
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lee

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Re: A wealth Tax Should Be Introduced In Australia
Reply #316 - Sep 28^th, 2026 at 4:29pm

thegreatdivide wrote on Sep 28^th, 2026 at 1:18pm:

Yes: but your assertion 'money printing' (more than once ie, after a one-off exchange rate devalution) necessarily devalues money is wrong, as I said:

So you admit you were fallacious. thanks. So printing money once will devalue the currency in existence, but more than once it will not? Roll Eyes

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Bobby.

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Re: A wealth Tax Should Be Introduced In Australia
Reply #317 - Sep 28^th, 2026 at 4:35pm

We're $1 trillion in debt and Albo keeps wasting more money every day.

ScoMo wasted 100s of billions over covid and

Albo wasted 100s of billions more on who knows what ? - rubbish.

Our Govts are printing money and causing inflation.
They do it by creating Govt. bonds and the Reserve bank prints the money to buy them.

The Reserve bank should tell each Govt to go to hell -
we're NOT printing any more money.

Michele Bullock should apologise for printing $1 trillion and causing our inflation problem.

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thegreatdivide

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Re: A wealth Tax Should Be Introduced In Australia
Reply #318 - Oct 1^st, 2026 at 6:04pm

Bobby. wrote on Sep 28^th, 2026 at 4:35pm:

We're $1 trillion in debt and Albo keeps wasting more money every day.

ScoMo wasted 100s of billions over covid and

Albo wasted 100s of billions more on who knows what ? - rubbish.

Our Govts are printing money and causing inflation.
They do it by creating Govt. bonds and the Reserve bank prints the money to buy them.

The Reserve bank should tell each Govt to go to hell -
we're NOT printing any more money.

You are correct in that c-i governments shouldn't 'print' money at all to borrow money; they should print money to fund essential public services without taxing or borrowing from the private sector, while ensuring the economy has the capacity to deliver those essential public services, thus avoiding inflation.

[quote]Michele Bullock should apologise for printing $1 trillion and causing our inflation problem.

Actually most money in the economy is 'printed' in private banks, when they write loans for credit worthy customers; as Philip Lowe confirmed during the covid bailout: he expressly denied to Adam Bandt the CB was 'funding' the government's rescue package.

As confirmed here:

(googe AI)

New money in a modern economy is primarily created by commercial banks when they issue loans.

🏦 Commercial Bank Lending (Digital Money)
• The Process: When a bank grants a loan, it does not lend out pre-existing savings or other customers' deposits.

• Double Entry: The bank creates a new asset (the borrower's promise to repay) and a matching new liability (the digital deposit in the borrower's account).

• Out of Thin Air: This keystroke action instantly expands the total money supply in the form of electronic bank deposits.

• Destruction: When the loan principal is repaid back to the bank, that created money is deleted from the economy.

🏛️ Central Bank Operations (Base Money)

• Physical Cash: The Reserve Bank of Australia (or other central banks) prints physical banknotes and mints coins, but this accounts for only a tiny fraction (around 3%) of total money.

• Central Bank Reserves: The central bank creates base money electronically for commercial banks by purchasing assets like government bonds (Quantitative Easing) or adjusting settlement balances.

• Policy Control: Central banks control this process indirectly by setting benchmark interest rates, which influence how eager commercial banks and borrowers are to create new loans.
•
Wikipedia
Money creation :This article is about the changes in the money supply. For how money itself was first created, see History of money...

• Bank of England Quarterly Bulletin 2014 Q1
Core Process: Commercial banks create the majority of money (bank deposits) by making new loans, simultaneously creating a matchin...

• www.rba.gov.au
What is Money? | Explainer | Education | RBA
What is legal tender? How is money created? Australia's banknotes are produced by the Reserve Bank of Australia, while coins are p...i

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thegreatdivide

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Re: A wealth Tax Should Be Introduced In Australia
Reply #319 - Oct 1^st, 2026 at 6:11pm

lee wrote on Sep 28^th, 2026 at 4:29pm:

thegreatdivide wrote on Sep 28^th, 2026 at 1:18pm:

Yes: but your assertion 'money printing' (more than once ie, after a one-off exchange rate devalution) necessarily devalues money is wrong, as I said:

So printing money once will devalue the currency in existence, but more than once it will not? Roll Eyes

Correct, provided the economy is well-managed by the government.

[btw, a looming ecological catastrophe will likely require the IMF/World Bank to oversee money creation in national economies, to avoid devaluation vis a vis other national currencies. We will see.]

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« Last Edit: Oct 1^st, 2026 at 6:36pm by thegreatdivide »

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thegreatdivide

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Re: A wealth Tax Should Be Introduced In Australia
Reply #320 - Oct 1^st, 2026 at 6:35pm

Jasin wrote on Sep 28^th, 2026 at 2:36pm:

Didn't Obummer Obama print money, of which a 10% interest fee was charged from the total amount printed?

No, Obama borrowed money (sold bonds to rich people/institutions) the same as all governments during the covid pandemic, which is why govts. everywhere are now 'broke' (according to the mainstresm media).

Did covid increase government debt ?

google AI).

Yes, COVID-19 significantly increased government debt worldwide and in Australia due to emergency stimulus spending and plunging tax revenues.

It's a pity covid turned out to a fizzer: a much more deadly pandemic would have forced governments to manage an essential-only economy for a couple of years or so, forcing them tp run up massive debts which would be mathematically impossible to ever repay (some people say govt. debt is already unrepayable)...a decent pandemic would have proved c-i governements need to create money without taking on debt, when necessary.

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Bobby.

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Re: A wealth Tax Should Be Introduced In Australia
Reply #321 - Oct 1^st, 2026 at 6:35pm

TGD makes stuff up -

Bobby tells you the truth:

We're $1 trillion in debt and Albo keeps wasting more money every day.

ScoMo wasted 100s of billions over covid and

Albo wasted 100s of billions more on who knows what ? - rubbish.

Our Govts are printing money and causing inflation.
They do it by creating Govt. bonds and the Reserve bank prints the money to buy them.

The Reserve bank should tell each Govt to go to hell -
we're NOT printing any more money.

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Jasin

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Re: A wealth Tax Should Be Introduced In Australia
Reply #322 - Oct 1^st, 2026 at 6:40pm

thegreatdivide wrote on Oct 1^st, 2026 at 6:35pm:

Jasin wrote on Sep 28^th, 2026 at 2:36pm:

Didn't Obummer Obama print money, of which a 10% interest fee was charged from the total amount printed?

No, Obama borrowed money (sold bonds to rich people/institutions) the same as all governments during the covid pandemic, which is why govts. everywhere are now 'broke' (according to the mainstresm media).

Did covid increase government debt ?

google AI).

Yes, COVID-19 significantly increased government debt worldwide and in Australia due to emergency stimulus spending and plunging tax revenues.

It's a pity covid turned out to a fizzer: a much more deadly pandemic would have forced governments to manage an essential-only economy for a couple of years or so, forcing them tp run up massive debts which would be mathematically impossible to ever repay (some people say govt. debt is already unrepayable)...a decent pandemic would have proved c-i governements need to create money without taking on debt, when necessary.

No. I'm pretty sure he just printed himself out for Trump to pay back later.

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AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.

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thegreatdivide

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Re: A wealth Tax Should Be Introduced In Australia
Reply #323 - Oct 1^st, 2026 at 7:00pm

Bobby. wrote on Oct 1^st, 2026 at 6:35pm:

TGD makes stuff up -

Bobby tells you the truth:

Bobby "tells you the truth" about current institutional arrangments - which are the problem resulting in governments unable to fund the essential services needed by the public (eg aged-care services going backwards).

Bobby wants to ignore aged care services.

Quote:

We're $1 trillion in debt and Albo keeps wasting more money every day.

Albo is already cutting essential public services to the bone, which is why ON is rising in the polls.

Quote:

ScoMo wasted 100s of billions over covid and
Albo wasted 100s of billions more on who knows what ? - rubbish.

Payments to allow locked-down workers to survive and pay their eseental bills aren't "waste" (and like I said, a decent pandemic would have blown your ignorance re money- creation sky high...)

Quote:

Our Govts are printing money and causing inflation.
They do it by creating Govt. bonds and the Reserve bank prints the money to buy them.

BS: most money in a modern economy is created in private banks when they lend money, - ask any AI agent.

Quote:

The Reserve bank should tell each Govt to go to hell -
we're NOT printing any more money.

The RB should be demoted to a clearing house for private banks, with government managing the economy instead.

How do you propose to fund essential public services?

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Bobby. Gold Member Offline Australian Politics Posts: 122972 Melbourne Gender:	Re: A wealth Tax Should Be Introduced In Australia Reply #324 - Oct 1^st, 2026 at 7:11pm TGD is bullshitting again. Australia has the highest per capita number of public servants in the world and the highest paid in the world. It's all paid for by printing money.
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aquascoot

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Re: A wealth Tax Should Be Introduced In Australia
Reply #325 - Oct 1^st, 2026 at 7:21pm

TGD

Is it not the case that a 1 trillion dollar debt means 50 billion a year in interest repayments and that means 50 billion a year that the government can't spend on.say , 20 new hospitals or new schools or rail road tracks or hydro dams.

You keep saying debt and interest don't matter but not having those assets DOES matter. Roll Eyes

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thegreatdivide

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Re: A wealth Tax Should Be Introduced In Australia
Reply #326 - Oct 1^st, 2026 at 8:07pm

Bobby. wrote on Oct 1^st, 2026 at 7:11pm:

TGD is bullshitting again.

Australia has the highest per capita number of public servants in the world
and the highest paid in the world.
It's all paid for by printing money.

Lies:

(google AI)

The claim that Australia has the highest per capita number of public servants in the world is false, as it stems from a heavily publicised data error, while the claim regarding their pay is only true for top-tier senior executives.

AI is proving itself useful (hopefully humans can manage it successfully, to promote a just economy).

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lee

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Re: A wealth Tax Should Be Introduced In Australia
Reply #327 - Oct 1^st, 2026 at 8:14pm

thegreatdivide wrote on Oct 1^st, 2026 at 6:11pm:

Correct, provided the economy is well-managed by the government.

And now come the qualifiers that were previously non-existent. Grin

thegreatdivide wrote on Oct 1^st, 2026 at 6:11pm:

[btw, a looming ecological catastrophe will likely require the IMF/World Bank to oversee money creation in national economies, to avoid devaluation vis a vis other national currencies. We will see.]

So where is this "looming" ecological catastrophe? A figment of ypur imagination?

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thegreatdivide

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Re: A wealth Tax Should Be Introduced In Australia
Reply #328 - Oct 1^st, 2026 at 8:26pm

Jasin wrote on Oct 1^st, 2026 at 6:40pm:

thegreatdivide wrote on Oct 1^st, 2026 at 6:35pm:

Jasin wrote on Sep 28^th, 2026 at 2:36pm:

Didn't Obummer Obama print money, of which a 10% interest fee was charged from the total amount printed?

No, Obama borrowed money (sold bonds to rich people/institutions) the same as all governments during the covid pandemic, which is why govts. everywhere are now 'broke' (according to the mainstresm media).

Did covid increase government debt ?

google AI).

Yes, COVID-19 significantly increased government debt worldwide and in Australia due to emergency stimulus spending and plunging tax revenues.

It's a pity covid turned out to a fizzer: a much more deadly pandemic would have forced governments to manage an essential-only economy for a couple of years or so, forcing them tp run up massive debts which would be mathematically impossible to ever repay (some people say govt. debt is already unrepayable)...a decent pandemic would have proved c-i governements need to create money without taking on debt, when necessary.

No. I'm pretty sure he just printed himself out for Trump to pay back later.

Wrong, Obama didn't "print himself out - you are merely asserting the mainstream nonsense re govt. debt; and in any case, govt (and private) debt has soared under Trump....some people claim the private AI-related debt is a bubble in the making, we will see.)

Re the US covid rescue debt

(google AI)

No, Barack Obama did not print money to pay for any COVID-19 rescue packages, as he was no longer in office when the pandemic occurred.

The primary U.S. economic relief bills were signed into law by his successors:

• President Donald Trump signed the $2.2 trillion CARES Act in March 2020, as well as a $900 billion relief package in December 2020.

• President Joe Biden signed the $1.9 trillion American Rescue Plan in March 2021.

How the Packages Were Funded

To fund these multi-trillion-dollar packages, the U.S. government did not physically print cash. Instead, the bills were financed through a process often colloquially referred to as "printing money":

1. Issuing Debt: The U.S. Treasury issued government bonds (Treasury securities) to borrow the money needed to cover the stimulus spending.

2. Quantitative Easing (QE): To keep the economy stable and interest rates low, the Federal Reserve (the U.S. central bank) purchased trillions of dollars of these government bonds. It paid for them by electronically creating new bank reserves—effectively injecting newly created digital money into the financial system.

Note 1. above: "The U.S. Treasury issued government bonds (Treasury securities) to borrow the money needed to cover the stimulus spending."

...ie, the ancient obsolete custom forcing the legal currency-issuer to borrow money from tyhje private sector.

Madness .....but good for rich peole who are seeking a safe investment in bonds).

As for 2. above

(google AI)

The Federal Reserve Steps In: During economic crises—like the 2008 financial crash or the 2020 pandemic—the Fed initiates QE. It does not create national debt; instead, it goes into the open market and buys up those existing government bonds that the government had already issued

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thegreatdivide

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Re: A wealth Tax Should Be Introduced In Australia
Reply #329 - Oct 1^st, 2026 at 8:36pm

aquascoot wrote on Oct 1^st, 2026 at 7:21pm:

TGD

Is it not the case that a 1 trillion dollar debt means 50 billion a year in interest repayments and that means 50 billion a year that the government can't spend on.say , 20 new hospitals or new schools or rail road tracks or hydro dams.

Indeed it is the case; hence the looming collapse of the financial system, as govt. interest payments on the public debt swamp govt. spending.

Quote:

You keep saying debt and interest don't matter but not having those assets DOES matter. Roll Eyes

That's correct: a currency-issuing govt. doesn't NEED to borrow (or tax) as per ancient obsolete custom, it needs to balance aggregate demand and eggregate supply (thus ensuring the necessary resources are available for purchase by the currency-issuer, to avoid inflation.

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« Last Edit: Oct 1^st, 2026 at 8:45pm by thegreatdivide »

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