nevertheless, printing money to spend it is criminal. Any program that increases government decreases free citizens.
It is criminal for us citizens, but not for the government. Nevertheless, inflation is the wave of the future, as citizens do not want to pay directly for all the government goodies they way. Even the FED plan to decrease Americans’ purchasing power by 2% a year.
well… Sucks to be your grandkids
People have confidence in debt instruments- until they don’t. Remember the 2008 crisis? Investors were buying securitized mortgages right up until the collapse. Then nobody would touch them. Confidence can evaporate overnight.
Worldwide debt insurance now exceeds worldwide saving. A lot of it is governmental debt issues. BRIC central banks are realizing the risks inherent in US government debt issues and are accumulating more gold as a reserve. They want diversification of assets, the same as any investor should. That is why the paper money price of gold has gone up so much.
You can create as many government debt issues as you want, but you cannot create buyers for them- UNLESS you mandate pensions to purchase a certain amount of them, as has happened in Argentina and now El Salvador.
In the end, the US central bank will be the buyer of last resort for US government debt, and they will do it with newly-created money, just like they did during COVID. That is why I say inflation is here to stay. Plus government debt service will crowd out other spending, exacerbating the deficit problem.
The stupidest economic idea in our lifetime- negative interest rates- was a failure and will not be tried again anytime soon. People merely withdrew their cash from banks and put the money in safes, like they did in Japan. Savers are not idiots.
There has never been, and never will be, a free lunch in economics.
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