Posted on 11/28/2014 5:30:08 PM PST by xzins
Must I really use a sarcasm tag every time?
None the less the Fed has been doing just that, and will continue to do so. The alternative are to cut government spending (though even that may not be enough anymore). It’s impossible to tax enough to pay for all the unfunded liabilities. In any case, either of those would require congress and the president to agree and actually do it. Either would also be political poison. OTOH, having the Fed monetize the debt doesn’t require any action by politicians, and is therefore relatively safe politically. Certainly the easiest option for all involved. All they have to do is nothing. It therefore will continue.
I have always heard it was a gazillion but I am not sure of that. :)
This mode of financing the federal government resembles what the Securities and Exchange Commission calls a Ponzi scheme. “A Ponzi scheme,” says the Securities and Exchange Commission, “is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission.
“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” explains the SEC. “Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”
This is the very Definition of our PUBLIC PENSIONS in EVERY STATE.
The German government fell into this routine back in the 20's and 30's. It caused inflation so bad that workers were paid twice a day since their earnings devalued that much between the morning and afternoon shifts. The wheelbarrow full of Deutchmarks to pay for a loaf of bread was not fictional.
I think the word you’re looking for is “quadrillion”.
Giving even more benefits to millions of illegals via Executive Amnesty, that burden will be sufficient to Cloward-Piven the financial system, however, and it’ll all come tumblin’ down well before we reach any quadrillion in debt.
HF
I thought that was called 'kiting paper'.
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