Posted on 07/01/2021 5:06:50 AM PDT by The Houston Courant
And Biden wants to add $6 tril more.
Ain’t it grand?
Whoops...wrong sheet. The National debt is $28 trillion. Biden wants to add $6 trillion more.
If the Fed raises interest rates the federal budget deficit goes into a death spiral as interest costs eat up a higher and higher percentage of the budget.
The Fed has painted itself into a corner—and they will stay there until there is hyperinflation.
They will then say: “We never saw it coming.....”
No, right sheet. The US isn't going to sell $6 trillion in new bonds, so the Feds will end up putting the debt on their books.
The Federal Reserve is like the banker in the newly revised Monopoly game where the banker gets to print an unlimited amount of new dollars and also gets to inflate the prices of the hotels, houses, and railroads.
The holdings illuminate the increasing role the central bank is playing the economy as the United States weathered the 2008 financial crisis and COVID-19. Do they even have anyone read these before they publish.
And you can’t blame it on COVID- because his January 2020 budget plan (pre-Covid) had $1 trillion in deficit spending. That was the plan HE was sending to congress. Now all of the sudden you all get religion. Hypocrites all.
The FED places all federal spending on the books. Always.
Based on the Grace Commission, IRS 1040 taxes goes to paying an ever greater debt, owed to the owners of the private FED - a handful of Bankster families, about 200 FED shareholders and a smaller amount to pay (off) IRS employees to not blab about the scam.
Regardless of who won in November the debt would have been climbing at a ridiculous rate.
Not all of it. Most would be sold to investors in the U.S. and overseas.
The “balance sheet” of the Federal Reserve is almost entirely Treasury Bills. The government “lending” itself money, that putatively will be paid back in the future. This is the same thing as just printing money, something that the government is not allowed to do. It’s like being a little bit pregnant.
I’d be more worried about deflation.
And they continue to create several billion new dollars every day. What could go wrong?
“If the Fed raises interest rates the federal budget deficit goes into a death spiral as interest costs eat up a higher and higher percentage of the budget.”
That used to be the case, but now the government mostly borrows from itself. Interest matters a lot less.
The vast majority of money is created by commercial banks via lending due to the "fractional reserve" model.
All they have to do is to tap a few keys on a computer and then they their balance will jump to $80 trillion.
No problem. The Feds will just crate as much money as they want out on a computer.
Went back in your posts...You are violently...anti-Trump.
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