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The Unites States will always pay the coupon. QE4 is currently supporting our record issuance in the repo market - you know, the support that was supposed to be
by daxorid 7y ago
The Unites States will always pay the coupon. QE4 is currently supporting our record issuance in the repo market - you know, the support that was supposed to be unwound by now, but has in fact grown in position since the beginning of the year.
We will monetize our debt forever, just like Japan, until there are currency consequences. The MMT people argue there will never be said currency consequences. We shall see.
- Mikeb85 7y agoThe currency consequences come in the form of inflation. So it's already happened. But if you mean real, paradigm altering consequences like what's happened to places like Zimbabwe or even Argentina, no, it'll never happen as long as demand for their products (and currencies) remains high.