[Leaning Right]

> Printing more money to cover the growing budget deficits just increases annual debt servicing costs at a time when interest rates have been increased. <

I meant they will simply create fiat money out of thin air, just as Zimbabwe did. This will not increase the debt as they are not borrowing money. They are creating money.

This sort of action is extremely reckless, and must lead to hyperinflation. But what other choice do they have?

(Well, Congress could start today to cut expenses and start to pay down the debt. However, the chances of that happening is zero.)

[kabar]

I meant they will simply create fiat money out of thin air, just as Zimbabwe did. This will not increase the debt as they are not borrowing money. They are creating money.

They are adding to the National Debt. They print money to cover the annual budget deficits. They can't sell enough T-bills publicly to cover the budget deficits. Revenue is not enough to pay the bills.

The Fed printed/held money (almost $8 trillion now) is part of the $33.5 trillion National Debt.

(Well, Congress could start today to cut expenses and start to pay down the debt. However, the chances of that happening is zero.)

They can't cut enough expenses to pay down the debt. We are running a $2 trillion annual deficit. Where do you get the $2 trillion from?

[kabar]

Michael Pento discussed the current state of the bond market and warned of the potential collapse of the US dollar due to the erosion of faith in the world’s reserve currency. He advised investors to sell long duration bond exposure and invest in short term US government debt. Pento also discussed the inflation and GDP acceleration, as well as China and Japan’s selling of US treasuries. He warned of the massive issuance and supply of US debt and questioned who will buy it, as the Federal Reserve is no longer buying and is instead selling their balance sheet, adding to the supply from China and Japan.