When the Fed starts buying up all the new Treasuries that need to be issued, exactly how does that result in monetizing the debt? I know intuitively that this must be correct, but technically, how does the money that the Fed gives the Treasury get into circulation? Is it through government expenditures (e.g., procurement on contracts, Social Security payments etc?). Insights?
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When the Fed starts buying up all the new Treasuries that need to be issued, exactly how does that result in monetizing the debt? I know intuitively that this must be correct, but technically, how does the money that the Fed gives the Treasury get into circulation? Is it through government expenditures (e.g., procurement on contracts, Social Security payments etc?). Insights?
Jan 09 09:51 am
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