I would say that taxation is second only to spending as the most important function of government. Failing to tax wisely and sufficiently brings about income inequality, and the vast wealth of the billionaires we now see is surely the result of tax cutting began with Reagan in the 1980s.
Concerning Treasuries, Michael Hudson in SUPERIMPERIALISM shows how the US was able to spend billions on its wars and regime change operations that left billions of dollars scattered all across the world. These were essentially useless to the holders, so they were happy to trade them for interest-bearing securities. We could call this savings, but I prefer to call it imperial tribute. Rome was never so clever!
I have yet to sit down read Hudson's SUPERIMPERIALISM, but I'm very familiar with his argument that the US has foreign countries paying—via seigniorage—for their own military encirclement.
What a great expansion on this essay; thanks for the comment!
As you've observed, treasury bonds serve many other roles not mentioned in this essay, such as establishing a benchmark price for risk-free debt.
I would say that taxation is second only to spending as the most important function of government. Failing to tax wisely and sufficiently brings about income inequality, and the vast wealth of the billionaires we now see is surely the result of tax cutting began with Reagan in the 1980s.
Concerning Treasuries, Michael Hudson in SUPERIMPERIALISM shows how the US was able to spend billions on its wars and regime change operations that left billions of dollars scattered all across the world. These were essentially useless to the holders, so they were happy to trade them for interest-bearing securities. We could call this savings, but I prefer to call it imperial tribute. Rome was never so clever!
I have yet to sit down read Hudson's SUPERIMPERIALISM, but I'm very familiar with his argument that the US has foreign countries paying—via seigniorage—for their own military encirclement.
What a great expansion on this essay; thanks for the comment!
As you've observed, treasury bonds serve many other roles not mentioned in this essay, such as establishing a benchmark price for risk-free debt.