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US government doesnt sell bonds to fund operations, it is never revenue constrained (because the US dollar is a non-commodity backed, floating exchange rate, fi
by noagenda 15y ago
US government doesnt sell bonds to fund operations, it is never revenue constrained (because the US dollar is a non-commodity backed, floating exchange rate, fiat currency). It sells bonds to remove dollars from the system.
- jpdoctor 15y ago> US government doesnt sell bonds to fund operations Yes it does. > It sells bonds to remove dollars from the system. No. The Fed is in charge of the money supply, and when they sell bonds, dollars are removed from the system. The US Govt selling bonds actually increases various measures of the money supply.