True Jason, whether one goes with a 10$ promnote or a 10$ Dollar note, 
what one gets in return for both at the Reserve Bank is 10$ Dollar note.

I used this to highlight, that money does not essentially need to be 
spent by the exchequer. There various ways to inject liquidity into the 
market.

I had yesterday spent quite some time actually explaining through use of 
demand-supply-disbalance pictures. I hope all of you could access it.

Truly yours

DL


On 9/16/2020 3:10 AM, nysa71 wrote:
> Deepak,
>
> If I understand you correctly, then the promissory note would be paid 
> in dollars. If the promissory note was issued by the currency issuing 
> government, then that government would *always* be able to pay the 
> payee whatever that determinate sum of money is under the terms of 
> that promissory note in its own currency.
>
> ~ Jason
>
> On Tuesday, September 15, 2020, 04:56:40 PM EDT, Deepak Loomba 
> <[log in to unmask]> wrote:
>
>
> How are dollars different from undated promissory notes - say issued 
> by the same govt.?
>
> On Wed, 16 Sep 2020 02:16 nysa71, 
> <[log in to unmask] 
> <mailto:[log in to unmask]>> wrote:
>
>     Hello ToK Community,
>
>     So far, I've mentioned a few key points about MMT:
>
>     One, to make a distinction between currency issuers and currency
>     users...
>
>     For a currency issuer, the spending must logically precede
>     taxation. That is, the currency must be spent into existence first
>     before that currency can be taken back in taxes. The taxation
>     (clearly) has nothing to do with "funding" the spending of such a
>     currency issuing government. The function of taxes is to create
>     aggregate demand for the intrinsically worthless currency. After
>     that, they function as a fiscal management tool, (e.g., to keep
>     inflation under control).
>
>     I've also mentioned Sectoral Balances. Simply put, in regards to a
>     currency issuing government:
>
>     Government deficit = (Domestic Sector surplus) + (Foreign Sector
>     surplus)
>
>     That is, a deficit is when the government spends more than it
>     taxes. But on the other side of the equation, this necessarily
>     means that the combined domestic and foreign sectors are the
>     recipients of a surplus exactly equal to that government
>     deficit...right down to the penny. It's just basic accounting.
>
>     So how does (for example) the U.S. government create dollars? By
>     the act of spending.
>
>     Simply put,
>
>     Dollars are /created/ every time the U.S. government /spends/,
>     simply by /crediting/ accounts.
>
>     Dollars a /destroyed/ every time the U.S. government /taxes/,
>     simply by /debiting/ accounts
>
>     Here's a short 6 and a 1/2 video with economics professor, Randall
>     Wray, explaining the basics, (with a cool anecdote about how
>     Colonial governments issued currency.
>
>     Have a good one,
>     Jason Bessey
>
>     https://urldefense.proofpoint.com/v2/url?u=https-3A__www.youtube.com_watch-3Fv-3DZzw8AO4vTqc&d=DwICaQ&c=eLbWYnpnzycBCgmb7vCI4uqNEB9RSjOdn_5nBEmmeq0&r=HPo1IXYDhKClogP-UOpybo6Cfxxz-jIYBgjO2gOz4-A&m=fdDcQgKH10Y4ffuct-Ct9veOkNGd3kUgLJE_Nv9YWZI&s=ZK_3n0CTXt037ABjIwQRUMq_w9xLR93tU4-gwce_pME&e= 
>     <https://urldefense.proofpoint.com/v2/url?u=https-3A__www.youtube.com_watch-3Fv-3DZzw8AO4vTqc&d=DwMFaQ&c=eLbWYnpnzycBCgmb7vCI4uqNEB9RSjOdn_5nBEmmeq0&r=HPo1IXYDhKClogP-UOpybo6Cfxxz-jIYBgjO2gOz4-A&m=G028qyZbUuiM5XRZRLsmqCPvcnnJ4Io8LAqICVrd8cY&s=BkHb8vd6GTiDINAJc2wTiC08goEMeACRWUjECM5h-Rg&e=>
>
>
>
>     ############################
>
>     To unsubscribe from the TOK-SOCIETY-L list: write to:
>     mailto:[log in to unmask]
>     <mailto:mailto:[log in to unmask]> or
>     click the following link:
>     http://listserv.jmu.edu/cgi-bin/wa?SUBED1=TOK-SOCIETY-L&A=1
>
> ############################
>
> To unsubscribe from the TOK-SOCIETY-L list: write to: 
> mailto:[log in to unmask] 
> <mailto:mailto:[log in to unmask]> or 
> click the following link: 
> http://listserv.jmu.edu/cgi-bin/wa?SUBED1=TOK-SOCIETY-L&A=1
>
> ############################
>
> To unsubscribe from the TOK-SOCIETY-L list: write to: 
> mailto:[log in to unmask] 
> <mailto:mailto:[log in to unmask]> or 
> click the following link: 
> http://listserv.jmu.edu/cgi-bin/wa?SUBED1=TOK-SOCIETY-L&A=1
>
-- 

############################

To unsubscribe from the TOK-SOCIETY-L list:
write to: mailto:[log in to unmask]
or click the following link:
http://listserv.jmu.edu/cgi-bin/wa?SUBED1=TOK-SOCIETY-L&A=1