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Money Reform II and National Credit

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Akeron
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Post: #1
Money Reform II and National Credit

If you have a national credit instead of national debt, what happens if you enact Money Reform II?

I'm just curious because I'm probably going to pay off my debt in three years, so I want to know if it gives me any special options in the future.

(On the side, I'm doing this because I want to try an alternate economic model where government is funded through interest charged on money lent to the public instead of levying taxes.)


Why return? That's a good question.

This post was last modified: 22.06.2017 05:17 by Akeron.

22.06.2017 05:16
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MrProper
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Hammerfest
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Post: #2
RE: Money Reform II and National Credit

Akeron Wrote:
If you have a national credit instead of national debt, what happens if you enact Money Reform II?

A good question. I personally never tried introducing Money Reform II while having a national credit. My assumption is, however, that the same thing happens as usual: The actual currency gets invalidated, and a new one is introduced, so you loose all your savings. Hence, it is probably not what you want to do.

Akeron Wrote:
On the side, I'm doing this because I want to try an alternate economic model where government is funded through interest charged on money lent to the public instead of levying taxes.

With respect to the aspect of having massive saving, I would advise you to be careful. While moderate government savings usually seem to have positive impact on happiness, a big surplus usually triggers a lot of unrest among the simulated citizens. That aspect can be summarized with the following sentence: "When the government has so much money in reserve, why is it taxing us poor people so massively?"

Nonetheless, I do not mean to discourage you from experimenting. Smile


冥王星違法です
22.06.2017 16:54
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Akeron
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Post: #3
RE: Money Reform II and National Credit

Yea, I've been cutting taxes massively as well every chance I get, and plan on using capital taxes once they're high enough to mitigate the reduction of income taxes.

We'll see how it works. Thanks for the input.


Why return? That's a good question.
22.06.2017 21:36
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Akeron
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Post: #4
RE: Money Reform II and National Credit

Step one complete. The debt is wiped out. Big Grin


Why return? That's a good question.
01.07.2017 23:41
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