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The Fed does NOT hold stocks. And dollar denominated bonds as backing for the dollar are basically a short-circuit.
by kiney 6y ago
The Fed does NOT hold stocks.
And dollar denominated bonds as backing for the dollar are basically a short-circuit.
- jevgeni 6y agoIt's not a short circuit if you consider asset liquidity.
- OscarCunningham 6y ago> The Fed does NOT hold stocks. Correct, this was my mistake. > And dollar denominated bonds as backing for the dollar are basically a short-circuit. The difference between dollars and dollar-denominated bonds is the time delay. Suppose you issue 100 kineyCoins and give them to me, and we have a contract that I have to give them back to you in a year. Then those coins will have value to third parties, because they know that if they hold them then as the deadline approaches I will have to buy those kineyCoins back in exchange for whatever those third parties value.