Quote:
Originally Posted by Pleasurepays
i meant people buying debt and investing in the financial markets to pay for printing 1.3 trillion dollars. "confidence" plays a role in the financial markets in the short term and has a short term influence.. not over the long term and in dealing with self created inflation and devaluing the existing investments in our debt. i am talking about what it takes to actually finance 1 trillion dollars we don't have and recovering from the consequences of printing that money. a compelling speech doesn't change the economics of the value of investing debt... and that's how debt is financed.. its financed by investors and those willing to invest.
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There are investors standing by waiting, begging, to finance that debt. Rates on treasuries right now are half a percent.
Half a fucking percent. People are willing to pay for the opportunity to own treasury bills.
There's a shitload of chicken money out there looking for a home, and adding 10% to our national debt at a time when there's a capital flight to safety is hardly going to be the inflationary death spiral you think it'll be.
Deflation would be the much bigger problem, considering how leveraged we are to begin with.
You can make the moral hazard argument all you want and I agree with most of it...but at the end of the day saving the innocent is more important than punishing the guilty.
