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Fed has to buy treasuries or risk the price bottoming out on them. It has the affect as QE which is inflationary. US can't keep running a trillion+ deficit,
by adrr 1y ago
Fed has to buy treasuries or risk the price bottoming out on them. It has the affect as QE which is inflationary. US can't keep running a trillion+ deficit, thats the cause of inflation.
- npoc 1y agoThe cause of inflation is printing more money than they destroy. But that's how the incentives lie. The banks get paid (interest) to print (loans). This is why we bitcoin.