> Would it create inflation? No, why would it? This depends if people are forward looking or not. Bonds have terms, an account in the Treasury does not, which

> Would it create inflation? No, why would it? This depends if people are forward looking or not. Bonds have terms, an account in the Treasury does not, which means it has no real meaning at all (It has no effect on anything so who cares if it ever gets paid back?). So, this is just obfuscation of money printing. When a government starts money printing, their money doesn't look so good anymore.