Where does all the money come from

Taxes, PSRI and borrowing.

The Govt does not borrow directly from the ECB, that is illegal.

Not even close.

From Micheal Martin's bank account

closer than you'd imagine. except they're money trees, magic money trees... @KyussB might have more to add?

The magical money tree of course.

I just listened to his latest podcast , David says potential buyers would be better off renting, as the government says it will build 30 k housing units per year, it can borrow money from the ecb at 1 per cent rate eg the present market does not give full value to most buyers at least in urban areas, or city's

I don't believe there is the requisite labour force to build that number.

America can simply print money and sell treasury bonds, Ireland can only borrow a limited amount per year, but it makes sense to borrow enough to build 30k units from the Ecb

As David says the present situation cannot continue , with single people working full time on a good wage stuck renting for the long term

The government realises they have to take action to provide more housing and housing for people on different wage grades especially people under 30

The Govt does not borrow from the ECB, that is illegal.

The ECB has been buying huge amount of public debt in the secondary market.

That has driven down bond yields.

The ECB purchases will not continue forever, which is good, as that's a sign that the economy has recovered.

As this huge buyer scales back its purchases, bond yields will rise.

If you are interested that is a good book on the subject.

Yes. The Irish have a curious view about the world. We expect pay like San Francisco and house prices like Kabul. The first line of any response to any whinge about Ireland should be "compared to what?" because the way you hear it Ireland is the worst country on the planet, some ways behind Somalia, when in reality we are top six for pretty much every attribute. And of course the canard that one example or one experience is how everything is. I've actually worked in the Hague and since the sixties they have had multi-generational mortgages!

People think governments are funded by taxes and money doesn't just come from 'the magical money tree'.

When in fact, that's literally how the fiat system works. Money is printed out of nowhere. Look up fractional reserve banking.

Money is created by the commercial banking system, yes.

But this thread is not about money specifically, it asks a question about Govt revenues.

The answer is that Govt revenues come from taxes and borrowing.

If they can cut spending by €4 billion, or find other sources for €4 billion the USC could go. Another idea would be to rename it, like in 2010. The USC is a new name for other levies which already existed.

jesus christ, we all need a major lesson on this one, including myself, money does not come from taxation. in a modern economy, there are effectively only two ways of creating money, from governments, via bond markets, and from private sector financial institutions, i.e. banks, in the form of credit. credit is in fact the most abundant form of money on the planet today, this of course comes from banks, when they create a loan, this is where mainstream economics, otherwise known as neoclassical economics, collapses, as it simply does not accept these facts, i.e. that banks create the majority of our money supply. it believes, and it still does, even post 08, including some of the world leading neoclassical economists, Krugman etc, that banks are 'intermediaries', i.e. moving money from one place to another, and taking a slice for themselves, but this is completely untrue, banks are actually still creating the majority of our money supply, globally. hence why no mainstream economist foreseen the 08 crash coming, but many non mainstream did, due to knowing these facts.

we in fact need to move away from this approach as a matter of urgency, as it has become too unstable, too prone to crashes and deep uncertainties, but in order to do this, we must embrace the perpetual deficit. by running deficits, we are maintaining a positive public money supply, and hopefully becoming less reliant on the private sector money supply, i.e. the credit supply, even though a credit supply would still be critical, i.e. we need banks remaining to be banks, and lending, but for more productive means, and not what they have been doing, for speculative purposes, helping to drive up asset prices, particularly in relation to property and land.

the war on public debt has significantly ramped up during whats called the neoliberal period, i.e. last few decades, its effectively propaganda from both the political left and right, and also politicians not having a fcuking clue about these fundamentals, go on, ask a politician about money creation, they ll probably mention taxation as well! we have allowed whats called the fire sectors(finance, insurance and real estate), to dictate and dominate our economies, helping tir share o drive us over cliffs, and them getting away scot free every time, its always important to remember, it was in fact the banks that went bust in 08, as their plan of continual asset price inflation, particularly in relation to property and land, collapsed.

oh and to the person above that said banks may stop lending, why would they do that, they would cease to exist if they did, as this is their main reason for existing! this is one of the main reasons why globally, banks moved their lending operations to bigger fish such as large corporations, vulture funds etc etc, which of course helped us all, didnt it, with their share buy backs and so and so...... oh and electronic money is not a construct, its very very real, and has been for a very very long time, as the majority of money, both public and private sector created money, is in this form.

oh and below is yet again, a snap shot of irelands money supply, both public and private, i.e. our debts, as debt is the money supply, i.e. without debt, we aint got no mon! you can clearly see what caused the 08 crash, i.e. an over reliance on the private sector money supply, i.e. the credit supply, via banks. oh and for good measure, ive thrown in the american money supply also, you can clearly see what happened throughout americas history also of over reliance on the private sector money supply, credit, and the subsequent crashes it caused

2020 GG revenues = 85.7bn

2020 GG expenditure = 104bn

https://www.cso.ie/en/releasesandpublications/er/gfsa/governmentfinancestatisticsapril2021/

I follow these best countries to live in; most livable cities; happiest country league tables with some interest, and don't recall Ireland placing top 6 in any of them. What positive criteria does ireland regularly place top six in?

2021 happiness - Ireland is 13th

2021 livable cities - Dublin ranks 51st

2021 Healthcare - 19th

2021 Best Countries - 23rd

2021 Corruption (least) - 18th

2021 Cancer rates - 3rd highest

Yay, Ireland makes your top 6 if you want cancer.

Where does inflation come from though, a suburban pub is now charging 6.90 for a pint of Guinness now that it has reopened?

Ultimately yes from Taxes. Govt borrow money cheap now in the financial markets. How will that be repaid? through taxation.

How soon are we fcked? Very. As soon as interest rates start rising to control inflation (hint probably very soon) then SHTF.

when your creditors are on your back, inflation is probably the only way out of it!

central bank

ultimately no actually, once again, the two main methods of money creation are governments, via bond markets, and banks via credit creation, neither have anything to do with taxation. where our obsession with taxation comes in is with balancing the books, which is in fact the most stupid thing to do, as we become over reliant on the credit supply, in order to run our economies

Average age in Ireland ranks 67th, the average being 37 in 2020.

We are 18th in life expectancy. Japan is first - 17 places better - so should be outdoing us on cancer rates if it were as simple as that.