Department of Government Efficiency

SunTrader · Dec 30, 2024

piezoe said:
Your observation that it takes an expenditure of time and energy to earn money leads to the distinction between what the U.S. does when it finds it does not have enough money and what we in the private sector must do when we find ourselves short of money.. When we borrow we must expend time and energy to pay back our lender. The U.S. does not borrow however; thus it doesn't have any loans to pay off. Neither does it have to expend significant time or energy to create the money it needs to cover its deficits or buy back the bonds it issues.* If you want to know whether a nation is borrowing or just printing to cover its deficits all you have to do is determine whether that nation is expending commensurate time and energy to cover it's deficits. Nations that have engaged in real borrowing using instruments denominated in another nations currency, e.g. Russia, Argentina, etc., have to expend commensurate time and energy to pay off their loans.
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*in the case of the U.S., and a number of other nations too, the money to buy back the bonds it issues has already been created and spent into the economy before the associated bonds are issued. Consequently, when the U.S. auctions bonds it is simply swapping a bond for money it previously printed and spent into the economy. Once this is understood it is immediately obvious that when the U.S. auctions bonds it is merely swapping an interest paying form of money (the bond) for a non-interest paying form (money deposited in a demand account at a bank). Private sector parties see this transaction as "lending" money to the government in exchange for interest. When viewed correctly from the perspective of the U.S. government however, there is neither borrowing nor lending occurring but instead simply a swapping of one form of U.S. money for another. Both forms were electronically originated as will be the interest owed later. There is no substantial expenditure of time and energy on either party's part.

You might wonder why the Treasury routinely swaps bonds in the amount of its deficits for the private sector's demand deposits. It's partly because if Treasury didn't reduce the size of demand deposits swollen by deficit spending, M2 would grow too rapidly; thus fueling inflation. By routinely swapping new deficit money for bonds, which are not part of M2, deficit spending is less likely to fuel inflation. Using open market operations, the Fed can, and will, later adjust the mix of M2 money and bond money in the economy according to its money policy.

From just the little bit I have posted here it should be obvious how absurd it is to characterize Bitcoin as being a "monetary system". Some here have even gone so far as to suggest bitcoin could replace sovereign currencies. That's ridiculous of course!
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TL DR (once again) after first couple of sentences, because obviously the U.S. does expend time and energy throughout the global "enforcing" the strong dollar which fuels our domestic economy and our dominant global corporations yuuuge share of other countries economies.

piezoe · Dec 31, 2024

SunTrader said:
TL DR (once again) after first couple of sentences, because obviously the U.S. does expend time and energy throughout the global "enforcing" the strong dollar which fuels our domestic economy and our dominant global corporations yuuuge share of other countries economies.
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Although your remark is obviously correct, it's not germane to my post in which I pointed out that only in actual borrowing must the borrower expend time and energy to pay back their loan. This expenditure of time and energy to pay back a loan doesn't happen in the instance of "Ersatz borrowing", which the U.S. engages in when it auctions Treasury bonds, because there is no actual borrowing going on.

Have you considered that you are wasting both your time and mine to respond to posts you haven't read?

maxinger · Dec 31, 2024

President Trump's favorite words.
He will be saying that a few thousand times soon.

Anyway, it makes sense to improve efficiency / productivity.

SunTrader · Dec 31, 2024

piezoe said:
Although your remark is obviously correct, it's not germane to my post in which I pointed out that only in actual borrowing must the borrower expend time and energy to pay back their loan. This expenditure of time and energy to pay back a loan doesn't happen in the instance of "Ersatz borrowing", which the U.S. engages in when it auctions Treasury bonds, because there is no actual borrowing going on.

Have you considered that you are wasting both your time and mine to respond to posts you haven't read?
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Seconds to reply, no. I can afford that.

The amount time you have spent to research this nonsense is likely incalculable.

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Department of Government Efficiency

SunTrader

piezoe

maxinger

SunTrader