2 ms·

It sure as shit creates money if the hypothetical future where you pay it back never actually arrives.

• arcticbull 3y ago
  But you do always pay it back lol. The US has only very occasionally defaulted. And MBS' get repaid through liquidation if needed.
  • jjoonathan 3y ago
    Why don't you put some money where your mouth is and take my bet, then?
    • arcticbull 3y ago
      I have no idea which bet, and no, I won't be. Thanks.
      • jjoonathan 3y ago
        > How much do you want to bet that [Federal Reserve Total Assets] goes under, say, $1T by 2030? In your universe, the aggregate debt comes due, markets tank, and rich people take the L like grown ups. In my universe, the aggregate debt comes due, markets tank, rich people persuade politicians to pull the lever again, they do, the fed goes and buys their assets, markets go back up, and the fed balance sheet increases. The fed's long-term increasing balance sheet represents a long-term net cash flow right into rich peoples' pockets. Again, if you are confident in your view of the universe, I'm asking you to put your money where your mouth is.