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How so? I thought the Treasury sold bonds on the open market to finance the deficit.
by mikeash 9y ago
How so? I thought the Treasury sold bonds on the open market to finance the deficit.
- jganetsk 9y agoIt's a widely held misconception that the government needs to finance its spending. It doesn't. It just spends money into existence. Treasuries are a political constraint, not a technical one. Please read about Modern Money Theory. https://www.nytimes.com/2017/10/05/opinion/deficit-tax-cuts-trump.html https://www.nytimes.com/2017/10/05/opinion/deficit-tax-cuts-... https://www.youtube.com/watch?v=TDL4c8fMODk https://www.youtube.com/watch?v=TDL4c8fMODk