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Bill: Debt Monetization Ban
Details
Submitted by[?]: National Centrist Party
Status[?]: passed
Votes: This bill is a resolution. It requires more yes votes than no votes. This bill will not pass any sooner than the deadline.
Voting deadline: April 2061
Description[?]:
| This bill proposes to disallow the Likaton government from printing new money to pay for government debts. This practice, known as "monetizing the debt" inflates the currency and deepens the national debt, while providing only a brief and artificial economic increase. |
Proposals
Debate
These messages have been posted to debate on this bill:
| Date | 01:09:07, May 30, 2005 CET | From | Proletariat Revolution Party | To | Debating the Debt Monetization Ban |
| Message | Inflation is needed for a strong economy. If you take it away, you get deflation, which in theory sounds better, but it has the same end negatiev effects that galloping and hyper inflation do. However, we like where you are going with this. |
| Date | 04:21:48, May 30, 2005 CET | From | National Centrist Party | To | Debating the Debt Monetization Ban |
| Message | Can't we fix money values? Ensure a fixed supply of money. Our mints will be mothballed, not dismantled. Whenever the supply of money declines due to natural events (like damage to bills), we can run a new printing run. The net effect will be a minor deflation cycle where the value of money creeps up until the printing run and then is restored to where it was before. We'll amend the bill for this. |
| Date | 08:16:22, May 30, 2005 CET | From | People's Party | To | Debating the Debt Monetization Ban |
| Message | I don't think freezing the money supply is good economically...it can lead to deflation but also higher interest rates which will slow down the groth of the economy. Ideally, money supply should grow slowly along with the growth in the economy so that its real value remains fixed. Fixing monetary supply will affect our ability to defend our currency from appreciation, which may not be advisable. |
| Date | 08:49:42, May 30, 2005 CET | From | Proletariat Revolution Party | To | Debating the Debt Monetization Ban |
| Message | Yes, I agree with PP on this. However, the first part regarding the government makes logical sense. Teh government should be fiscally responsible for its spending. Freezing the rate isn't healthy. This needs some work, but the basic concept is good. |
| Date | 13:34:07, May 30, 2005 CET | From | National Centrist Party | To | Debating the Debt Monetization Ban |
| Message | People's Party: I appreciate your views on this. You have a good head for finances. I was under the impression that both inflation and deflation are bad. The idea of a frozen money supply is to prevent both - the supply of money doesn't change at all. Or does this deflation source from increased populations, where the money is spread thinner? I can understand where that would happen, and would appreciate an insight into just where we peg our currency supply to keep it's value steady. |
| Date | 17:14:31, May 30, 2005 CET | From | Proletariat Revolution Party | To | Debating the Debt Monetization Ban |
| Message | Inflation keeps the economy strong. If there is high consumer confidence, inflation goes up; the value goes up, and it means interest rates are low. If our currency'as value begins to effect exports, then the Likaton National Bank adjusts interests rates, which helps decrease the values and in a sense helps lower the price. Inflation in a way is inevitable. It can be controlled through interests rates. But, having a fixed money supply will really only hurt the economy in the long run. Change is needed to reflect the change in the economy. The price raises when demand raises; price lowers when suppkly increases. Inflation is linked to supply and demand (through an indirect reklation).... (ow...my head hurts now) |
| Date | 18:47:14, May 30, 2005 CET | From | National Centrist Party | To | Debating the Debt Monetization Ban |
| Message | Alright, alright. Then I'll amend this bill. I can strip it back to a form that ought to be agreeable. |
| Date | 20:18:30, May 30, 2005 CET | From | People's Party | To | Debating the Debt Monetization Ban |
| Message | I'm glad to be of any help... Moderate inflation is not a bad idea, it is natural in a growing economy... Controlling through the interest rate has its own set of problems... Inflation needn't go up becoz of increased consumer sentiment...higher prices for raw materials, higher labor costs or increased money supply are other reasons. |
| Date | 20:19:28, May 30, 2005 CET | From | People's Party | To | Debating the Debt Monetization Ban |
| Message | I will vote yes for no govt printing for funds.. |
| Date | 20:34:10, May 30, 2005 CET | From | Proletariat Revolution Party | To | Debating the Debt Monetization Ban |
| Message | Same here. It's only fair. |
| Date | 10:55:28, May 31, 2005 CET | From | Right Wing Liberals Party | To | Debating the Debt Monetization Ban |
| Message | I support LFP here Kipper and Klippen is Verboten! Have a look at what happened to Greece in WWII. |
| Date | 20:28:32, May 31, 2005 CET | From | Liberal Party for Equality | To | Debating the Debt Monetization Ban |
| Message | I dont think the currency should be fixed. but i'm not sure that my opinion on these matters are informed enough to be trustworthy... |
| Date | 22:25:41, May 31, 2005 CET | From | National Centrist Party | To | Debating the Debt Monetization Ban |
| Message | LPE: The currency won't be fixed. That was proven to be foolish, and thus removed from consideration. |
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Voting
| Vote | Seats | ||||
| yes |
Total Seats: 92 | ||||
| no | Total Seats: 0 | ||||
| abstain |
Total Seats: 45 |
| Random fact: Large scale RP planning (such as wars, regional/continental conflicts, economic collapse, etc.) should be planned (as best as it can be) and should have consent of a majority of players involved. |
| Random quote: "This country has far more problems than it deserves and far more solutions than it applies." - Ralph Nader |