Andrew Lainton — Is State (outside) money a liability, and if so to whom?

Readers of this blog will now that I have strongly argued that economics must be rebuilt around the accounting constraints of capitalism- balance sheet economics -, that these constraints are underlying laws of the economics system not legal conventions. Whether or not conventions align with them is just contingent however if account don’t match them that are likely to lead to false economic decisions with real consequences. From this perspective the resolution to such theoretical debates is straightforward in method but not always easy in practice, it is to determine what the accounting mistake is. 

From the balance sheet perspective a liability will be held by an economic agent if it readers an economic service. So what is the nature of that service?

Decisions, Decisions, Decisions
Is State (outside) money a liability, and if so to whom?
Andrew Lainton