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he's talking about the government lending money to the government, not our massive borrowing. even more obscene than this fiction is how the Federal Reserve pr
by stretchwithme 16y ago
he's talking about the government lending money to the government, not our massive borrowing.
even more obscene than this fiction is how the Federal Reserve prints money, lends it to the banks, who then lend it to the Treasury and collect 3% for doing so. Its such an obvious subsidy of that whole sector, without which would look much worse.
- guelo 16y ago> he's talking about the government lending money to the government, not our massive borrowing. The point is US T-bills are considered one of the safest investments in the world but when people start talking about SS for some reason they pretend that they are worthless.
- amh 16y agoTreasurys are "safe" in the sense that the US will never default, since the government can simply print dollars as needed to cover the debt. So yes, you're guaranteed to get your 1% interest in nominal dollars... the question is, how much are those dollars really worth? The dollar may not enter a hyperinflationary death spiral as some believe it will, but its days as the default world reserve currency appear to be fading fast.