The thing is, the fed isn’t printing money. They’re telling government it’s okay to put some magic numbers into the computer, out of thin air, and it’s “spent” for stuff the government can’t afford. Then, for some reason I can’t comprehend, it’s a debt that has to be paid back. Why don’t they just pay the bills and not “pay it back”? Either way, it’s make believe. Except their way, the rich get richer, forever.
I refered to that in another post as Ben turning our fiscal policy into a video arcade game.
My gut feeling is that paying for stuff now would equal inflation now. Converting it to debt kicks the can down the road. For those who are not paying attention, kick the can is the new national pastime, at least inside the beltway. Unfortunately, the can is getting larger, and the road is getting shorter.
Not really, it's bits in a spreadsheet at the Fed. If they sold that debt the market would tank and interest rates would skyrocket. So they are not going to do that. The end game is default. Americans will get to start over.