Not sure what you mean here. The government did not borrow this $17 trillion to hide the pile of money in a vault somewhere. They borrowed the money and spent lots of it on "the public", much of it on the non-working segment of "the public".
Might explain why M2V (velocity) is falling - the government is sucking too many dollars out of the economy?
Velocity isn't a very useful number, simply money supply divided by GDP. Government spending is part of GDP, so that wouldn't cause velocity to drop.
Increasing the supply, a lot, while GDP is sluggish, will cause velocity to drop.
I'm pretty sure if you look at the US debt practically, it will never be paid off.
Right. Which is a political issue, not a "debt can never be repaid, because borrowing increases money supply" issue.
I did say that in a debt based fiat system you could never pay off "the debt" (not treasury debt - the entire debt).
You could pay off the entire public debt.
Do you know of any reliable data about how much the Fed makes off of each dollar from creation to grave?
Not sure what you're getting at. The Fed prints (gets the BEP to print it) $1 billion in $20s and sells them to a bank, in exchange for their reserve balance of $1 billion. Then they buy T-Bills with it and collect the interest. They make money off the debt they buy, there is no "interest attached" to the FRN, despite idiotic claims otherwise.
Hope that helps.
Not sure what you mean here. The government did not borrow this $17 trillion to hide the pile of money in a vault somewhere. They borrowed the money and spent lots of it on "the public", much of it on the non-working segment of "the public".
Sorry for the confusion. This was in reply to your suggestion the the 17T in debt, not to mention the state, local, and commercial debt issued exceeds M2.
I'm was simply saying that the 17T in debt isn't M2, but M4 (i.e., locked away M2 - sort of). If ever paid off, much of it would return to the economy as M2, again? That might even increase inflation?