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Printing money will help paying debt in nominal terms but can scare buying bonds without a premium, why would investors hold bonds paying 4% if the USA governme
by piva00 1y ago
Printing money will help paying debt in nominal terms but can scare buying bonds without a premium, why would investors hold bonds paying 4% if the USA government might just devalue it by 3%/year through inflation by the end of the bond term? Increasing rates would cause a spiral.