Originally Posted by
RXS676
But I'm referring to the MONETIZED debt, which is specifically debt that was never sold on a market to an investor, but rather sold to the federal reserve. The FED is purchasing debt, putting dollars in the United States Treasury to spend on bailouts.
How did the federal reserve get those dollars?
The same way I create this message; literally, with a few keyboard strokes and mouse clicks. This is why lack of interest on the part of INVESTORS to buy treasurys will not necessarily force the federal government to curtail spending.
Not quite that simple, it creates debt for the FED. Debt we will eventually have to pay for through taxes. Much like the excess in social security in earlier years- an IOU was left for the pirated funds-again, we get the bill later.
They can't print money without creating debt.
The FED and foreign buyers will be unable to shoulder much more. The party is ending. Capital is finite.