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...the SSTF holds exclusively US Treasury notes and bonds as assets. You're describing a distinction without a difference, as other parts of the USG have alrea
by thraway2016 10y ago
...the SSTF holds exclusively US Treasury notes and bonds as assets.
You're describing a distinction without a difference, as other parts of the USG have already spent the surplus.
- guelo 10y agoSure, but US Treasuries are considered some of the safest assets in the world.
- wang_li 10y agoI'm not sure I understand where you're coming from as it assumes that the US won't be paying back its debts. Do you also consider that money you deposit into your checking and savings accounts as having disappeared into a black hole?
- thraway2016 10y agoI'm not sure I understand where you're coming from as it assumes the exponential function will stop working in the near future. I'm coming from the perspective that there is neither a short term nor long term plan to address the inevitable default of the US government, decades hence. We WILL either default, monetize, or sell federal land. Math won't stop working in my lifetime.
- jimmyk 10y agoThe point is that in order for government to pay back its debts, it has to tax people (or fire up the printing press).
- mywittyname 10y agoThere's nothing wrong with "firing up the printing press." The US government will be in debt for the rest of its existence and the balance of that debt will likely increase every year. The Federal Reserve openly targets a 3% inflation rate and that inflation is going to come from ye olde printing press. IMHO, better this inflation come in the form of SS payments than payouts to military contractors.