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84 sats \ 101 replies \ @Satosora 7 May \ on: US Treasury issues 125 billion dollars worth of new bonds this week econ
Wow
You start wondering when peoole are going to open their eyes and stop buying them.
Then shit will hit the fan.
They'll just start forcing people to buy them, in that case.
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There were talks about doing something called “baby bonds” where each child would get a bond from the government and then couldn’t touch it till they turned like 18 and I could see that being a “fantastic” way to offload them on the population… idea seemed to have died once the House flipped in 2022 but before it was talked about quite a bit on the hill
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The idea was based off of some other country I think in Europe. I will see if I can find who it was that was a huge proponent of it.
Ah found a link turns out it was reintroduced this Congress as well
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Here is the most recent version of the bill…. $1k at birth
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That's diabolical. I assumed they would put financial requirements on things like pension funds and university trusts that would require them to hold some proportion of US treasuries.
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To be honest I am not sure… I think they could be something that take care of the issue and they wouldn’t need to do that however I could see government pensions being another big off ramp for these bonds as well
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Could they do that?
Actually, arent they using social security to prop things up?
I think the government has borrowed from it time and time again.
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The social security trust was a fiction to begin with, but even so, it's been in the negative for several years now.
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Isnt it because they borrow from it though?
It should be highly positive with all the growth we have had in our economy in the past.
Just amazes me how mismanaged the money is.
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Not really, but sort of. There was some fake accounting that was called the social security trust fund, but it was never legally binding in any way and the program was never actually set up to be financially sustainable.
On occasion, politicians have publicly justified their reckless spending as borrowing from that fake trust fund, though.
If they got really desperate, they could do a bail-in for themselves and convert people's savings into treasuries.
The one certainty is that they will do something to prop up demand for US debt.
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Everything they do is cheating.
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How would they even enact it?
Give each parent a debt of 1000$?
That would hurt a lot, considering how much a baby costs!
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There are lots of options, but one that comes to mind is that they could make it a refundable tax credit. That would basically let people buy bonds instead of paying taxes.
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We don't have minimum reserve requirements in the US anymore.
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There was shockingly little coverage when they were removed it a few years ago.
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The writership of the general media is too financially illiterate to report on it in detail (which is why they were hired).
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