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To reiterate my point: It's not like if the government prints money to pay off the Treasury Bonds that it would actually cause inflation. The fact that the Bond
by quadrangle 9y ago
To reiterate my point: It's not like if the government prints money to pay off the Treasury Bonds that it would actually cause inflation. The fact that the Bonds are out there is already somewhat accounted for in the economy in the way that people get and save the bonds.
So, turning them into USD if necessary wouldn't be the same as printing USD with nothing to offset it. The choice to print USD while the bond values in the world go away is effectively negligible. That's the core issue, whether or not the action in the end is to print USD or go in other directions.
- candiodari 9y agoI don't get how I'm ever going to tell you that government bonds do not in fact print money. What you're describing has nothing to do with government bonds. > > Government spending is bad because it inherently is not an investment in future wealth production > But that's not the definition of whether something is good or bad. It's also not a direct investment in future wealth production if I consume something, and we don't say that all consumption is bad. Most consumption is bad at being investment. True. To put it another way "you can eat your seed corn". Perfectly reasonable as long as things keep growing. What was our GDP growth rate again ?