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except inflation is directly related to the amount of new debt issued, because thats the only source of M1 money supply. If the US Treasury didn't borrow from t
by abfan1127 8y ago
except inflation is directly related to the amount of new debt issued, because thats the only source of M1 money supply. If the US Treasury didn't borrow from the Federal Reserve and instead printed its own currency, this would be different.
- Retric 8y agoThe FED can create money from thin air when banks fail. So, debt is not the only source of M1 money supply.