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To be clear, the issuance of debt by the US government does NOT increase the money supply. It would if the US government took loans from the banking system, bu
by lottin 2y ago
To be clear, the issuance of debt by the US government does NOT increase the money supply. It would if the US government took loans from the banking system, but that's not how governments get funding. I'll leave it here, because I don't think that this conversation is going to be productive for either of us. Don't take it personally.
- fuzzfactor 2y agoIn the US up until about the 20th century, the government was known to only take loans from the banking system in times of war.
- Hock88sdx 2y agoMy goodness your assertion that US government doest NOT increase money supply is your own thesis? It is so strange seeing US government borrow money and then no inflation (current inflation must be imaginary!)! FED now DIRECTLY buy American T-bills (their excuse is to keep the liquidity going). FED create money out of thin air to give to Yellen to spend! You seriously need to have friends in FED to know what hanky panky things they are doing in there right now. Textbook and what is happening is totally different. I do take it personally when misinformation like yours disguise as "expert" without observed realoty to backup (maybe some links and numbers which by now has never been auditted by any 3rd party similar to Fort Knox).