It was reported that our government is making a saving of B$20 million on the revised electric tariff. Those savings are purportedly being channeled to other areas such as education, health and etc. Full details can be found on the following.
For those who had been following my ramblings shall undoubtedly understood that B$20 million saving by the government meant that the people shall be B$20 million poorer. But the biggest question remain is to why do a monetarily sovereign nation needs to save her own money?
Money is a human technology. It is a tool created and managed by human beings to organize the tasks of assigning prices and values to goods and services, and to organizing the production, exchange and distribution of those goods and services. A sovereign government like our country is not the mere user of a form of currency for whose existence it is dependent on someone else. Our country can always produce and issue the additional monetary resources and financial instruments it needs, in whatever quantities it needs, and it can do so at negligible cost.
In the world of modern money, a sovereign currency issuer can create money simply by using computers to mark up the government accounts it administers. It is always possible that such a country cannot achieve some desired end because of a shortage or real, non-monetary resources. But it can never be the case that the government of such a country is incapable of organizing some needed effort of production and exchange because it has “run out” of the money over which that government itself exercises sovereign monopoly control. That’s like saying that we can’t have any more people in the world because we have run out of names.
Once again then, why do our government needs to save up her own money?
Once again then, why do our government needs to save up her own money?
