pull down to refresh
The US needs to start paying off some of its debt.
Never gonna happen. Fiat has a growing need for debt inscripted to roll over the debt load +'yield
RIght, I get that. But if they just paid of some of it...they could strenghten the dollar again.
no, that doesn't work in the fiat money system because we use credit as money. so when a large debtor like the united states repays and redeems parts of its loan, the money supply drops dramatically. then there is illiquidity and massive interest rate spikes the existing debt becomes unpayable and a death spiral is set in motion. so credit, the money supply, has to keep increasing
That is true. But it is time for us to suffer a bit so that we can improve our situation.
yes, but that would collapse the banking system, which is the circuit of the distribution system that makes the big robbery via the credit mechanism around inflation possible in the first place. That will only happen when the entire system collapses and can no longer be sustained
Its only a matter of time.
What a bind the fed and treasury are going to be in. Fed will need to cut but no one wants treasuries unless the juice is worth the squeeze.
And, inflation is still over it's target.
The Fed can be the Treasury buyer of last resort
Just like the BoJ
Isn't that nearly all central banks?
To some extent but the BoJ are the worst and longest offenders.
It's getting harder to absorb this public debt crap.