Naive question: If the US Treasury is 'borrowing' $3 trillion this quarter, who _exactly_ is it 'borrowing' this money from, and what collateral are they offering?https://www.cnbc.com/2020/05/04/us-treasury-seeks-to-borrow-a-record-3-trillion-this-quarter.html …
-
They’re borrowing from future taxpayers and/or inflation using the US military as collateral.
-
-
Been like this since 1971, but it won’t last for much longer
-
Japan doesn't seem anywhere close to economic collapse from anything I've heard. Our ratios are way better as far as per capita deficits.
- 4 more replies
New conversation -
-
-
Why would they do that which will increase their already gigantic debt?
End of conversation
New conversation -
-
-
Another way to consider it is that they simply dilute the value of all current dollars in the economy at present by the % of "new" money added. In that sense, it's a tax on wealth instrumentalities- anything with a 'face value.' Gold rises; current bonds decline.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Only if you assume a perfectly efficient economy. In the real world, it depends on the amount of real resources, savings desire, etc. Real world example - Japan: Debt-to-GDP of 200.5%. Deficit of 16.5 Trillion Yen. QE since 2001. **Yet their inflation is 0.79%.**
-
In other words, people naively assume that the amount of dollars in the economy at this moment in May 2020 is the "right amount" and any additional dollars is "bad". Why assume that?
- 15 more replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.