Dollar to oil ZERO? Must be new math lol
SA went off the petrodollar
Why do people freak out over the “national debt” but nobody really worries when a corporation issues shares of its stock to bring in new investors?
When the Fed creates dollars and gives them to banks so they can buy Treasuries its equivalent to a corporation creating shares and selling them at a fixed price. Nobody expects the corporation to buy as many of its shares as it creates (balanced budget) or to ever buy up all its shares unless the company goes private. This would not be a good thing for America as we know it.
Nobody says the corporation adds to its deficit by creating stock. If they overdo it and create too many shares, the corporations earnings-per-share are diluted and the market reduces the value of the shares. In this case the value of the dollar goes down relative to other currencies (floats) in the FX market which is the real “stock market” for national wealth in the world. This makes imports more expensive and can add to inflation.
What’s frustrating is that so few people in government and even at the Federal Reserve even understand how their own corporation works. They still play games with “debt ceilings” and come up with gimmicks like the “debt clock” to scare average people and gain power over them.