Happy belated 4th back at ya. But Gubmint is no different than the rest of us. In my book they should only spend what they have, not create what they don't. No need to beat this once again. Have a good one.
dude, the congress is clueless. they rely on their staffs to tell them the numbers. and congress earmark for their own constituent, hence money creation.
Lol, private mortgage lenders, banks, private equity, corporations, real estate investors etc etc all of them create money "out of nothing" all the time. See, Corporate Bonds are a form of money too, because they can be easily converted into something of higher moneyness (like deposits) Of course, they are not “money” in the same sense that bank deposits are because they aren’t a very useful medium of exchange for practical purposes. And under the current monetary design, US government bonds resemble something like corporate bonds much more than they resemble something like bank deposits. Therefore, government bonds should best be thought of as financial instruments with a high level of moneyness
LOL They only are able to do that when interest rates, obviously controlled by The FED (LOL), are kept artificially low for long periods of time. LOL One more for good measure LOL. PS if only it was really a funny matter.
(Bloomberg) Fed plans Wall Street economists and strategists caution that the process of reducing the Fed’s balance sheet remains complex and hard to predict. Powell has assured lawmakers that the central bank is avoiding a repeat of 2019 — when the repo market, a key part of US financial plumbing, seized up. However, the full impact of the process — known as quantitative tightening — has yet to be felt in markets. “Things will start tightening on the liquidity side,” predicted Raghuram Rajan, the former International Monetary Fund chief economist and Indian central bank governor. “Then we will see the full consequences” of QT, he said last week on Bloomberg Television.
Actually, the FED do not control the rates, the markets do. The FED react to the curve. The bond markets are consistently accurate at pricing in what the Fed will do throughout the year. Central banks can influence interest rates, of course. But there’s a world of difference between influence and control. At best, when the Fed affects the federal funds rate, it helps markets transition to a new supply-and-demand equilibrium impelled by changes in economic fundamentals