> “For years, the US government has been able to finance it’s debt at cheap interest rates because there have always been plenty of enthusiastic buyers. As long as the Chinese, the Japanese, and others continue to hold and buy large amounts.”
Stupid writer looking to fill space for a deadline.
Chinese have dumped nearly all of their US Debt as have other nations, for years now.
Fed Reserve is now biggest purchaser of US Debt, by far, very far.
International haters of America are pissed that its central bank, the Federal Reserve ‘printed all that money’.
Normally such money creation (printing = digital fund creation) would result in inflationary collapse but in today’s world of international currencies, it’s a race to the bottom and major currencies other than the US Dollar are leading the race to the bottom.
It seems a fortunate circumstance but long term it grows the government reservation of the United States with a resultant decline in the US population’s ability to lead and innovate. Seemingly benign actions have unforeseen circumstances.
OK, so, I need to ask a question.
The Fed’s QE*.
The Feds were buying ~$85 Billion per month of US Treasury issued Bonds in order to fill the gap/demand and provide liquidity to Treasury to run our government etc...
They bought, at least initially, short term Treasuries.
The Feds created money out of thin air, I get this.
Who paid the Feds back?
Were they ever paid back?
If they weren’t paid back, did they just take the loss?
If they were in fact paid back, what did/is the Fed doing with that money? More QE?
If they were NOT paid back, doesn’t that make US in default?