Isn't this what the government has been doing already, for the $30+ trillions we've already borrowed? We print money, hand it out, and put it on the countries tab?

Quote from: TDoS on Apr 20, 2026, 05:46 PMIsn't this what the government has been doing already, for the $30+ trillions we've already borrowed? We print money, hand it out, and put it on the countries tab?

No, not really.

When the FSoA wants to borrow money, it goes to Da Fed (a theoretically separate corporation, not a department of Da Goobermint) and asks for it, like you would ask for a loan at the bank.  To get that loan, you have to offer up collateral, which are the USTs.  What are they worth?  To find out, you sell them on the open market.  You've heard of treasury auctions, right?  What they sell for determines the interest rate, the price runs inversely to the yield.  The lower the price, the higher the interest.

When a big holder of USTs (like the Chinese) starts selling their supply, the interest rate goes up.  If they flood the market, the sky's the limit there.  The risk in holding them to maturity has gone up so there are not enough buyers.

At this point, the only option is for Da Fed itself to buy the USTs,  without any collateral.  Now nobody knows what the USTs are really worth, or by extension what the dollars they back are worth.  The more you print this way, the less they trade for, until they're worthless.  AKA, Hyperinflation.

RE   

Not a good year to be hauling freight.  Or farming.  Or heating your home.

RE

UNLEASH THE KRAKEN!

What could possibly go wrong?



RE

Has anyone figured out that excessive liquidity destroys wealth?

Like in this old movie.


Do rich people want their shit on a blockchain.  I think not.  On the other hand people without money likely think crypto is the best thing since sliced bread.  If only they had some.  It is the stuff of dreams.  But not my jam.

RE

Quote from: RE on Oct 12, 2026, 04:51 AM
RE

Great graphic! I agree with the socialists in the Nordic model that we let capitalism continue doing what it does best...make money for some folks and pollute all to be beat hell....but we SOCIALIZE some of that cash from the rich folk! Of course, after we ding them a little, we'll still need to ding all the regular folks for the huge advantages they now have, like the free health care thing. And tax them more to make up any difference because obviously we can't be capitalist and require them to all make a common wage or pay equally into the new capitalist/socialist sorta compromise structure, that smacks too much of socialist communism.