When you consider what Japan did and got away with it, this makes sense. The government does need to shrink and much of this deficit feeds the deep state and its exercises in the futility of nation-building and spreading Democracy. Just to mention a couple of my pet peeves.
"The Treasurer should make a public statement that the American Government is not close to bankruptcy and can never “go bankrupt”." Really?
From WikiP: "There are four types of marketable Treasury securities: Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities (TIPS). The government sells these securities in auctions conducted by the Federal Reserve Bank of New York, after which they can be traded in secondary markets."
I would agree except at the point where Banks or whomever decide that they no longer want to hold Treasury securities so stop bidding at those auctions. When Banks etc begin to think that the USA debt is so huge, that they wont get their money back, and stop bidding, then the USA is in very serious trouble. Dr. Brady seems convinced that this cannot happen, that is until the moment when it does! The Black Swan Event?
Ah yes Greg, but don't forget that if investors fail to buy the bonds, the Fed will (QE) and they have a magic money tree due to the exorbitant privilege of the mighty dollar! LOL. This is why Gerry makes his claim.
So if you flood the country with money (QE), the dollar will not be in risk of collapse? I don't believe that any currency is immune no matter how important it is seen to be, but then I am not an expert.
Yes BOOM did mention the risk of currency collapse and it is also true of the dollar, but because of the vast volumes offshore (eurodollars) it is unlikely at this stage.
When you consider what Japan did and got away with it, this makes sense. The government does need to shrink and much of this deficit feeds the deep state and its exercises in the futility of nation-building and spreading Democracy. Just to mention a couple of my pet peeves.
I'll join you in your 'pet peeves' Bert! :-)
I have a zoo full of them.
"The Treasurer should make a public statement that the American Government is not close to bankruptcy and can never “go bankrupt”." Really?
From WikiP: "There are four types of marketable Treasury securities: Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities (TIPS). The government sells these securities in auctions conducted by the Federal Reserve Bank of New York, after which they can be traded in secondary markets."
I would agree except at the point where Banks or whomever decide that they no longer want to hold Treasury securities so stop bidding at those auctions. When Banks etc begin to think that the USA debt is so huge, that they wont get their money back, and stop bidding, then the USA is in very serious trouble. Dr. Brady seems convinced that this cannot happen, that is until the moment when it does! The Black Swan Event?
Ah yes Greg, but don't forget that if investors fail to buy the bonds, the Fed will (QE) and they have a magic money tree due to the exorbitant privilege of the mighty dollar! LOL. This is why Gerry makes his claim.
So if you flood the country with money (QE), the dollar will not be in risk of collapse? I don't believe that any currency is immune no matter how important it is seen to be, but then I am not an expert.
Yes BOOM did mention the risk of currency collapse and it is also true of the dollar, but because of the vast volumes offshore (eurodollars) it is unlikely at this stage.
https://www.investopedia.com/terms/e/eurodollarbond.asp