67 sats \ 6 replies \ @Satosora 7 Aug \ parent \ on: "Abysmal" Treasury Auction- James Lavish econ
The US needs to start paying off some of its debt.
write
preview
40 sats \ 5 replies \ @TomK 8 Aug
Never gonna happen. Fiat has a growing need for debt inscripted to roll over the debt load +'yield
reply
57 sats \ 4 replies \ @Satosora 8 Aug
RIght, I get that. But if they just paid of some of it...they could strenghten the dollar again.
reply
40 sats \ 3 replies \ @TomK 8 Aug
no, that doesn't work in the fiat money system because we use credit as money. so when a large debtor like the united states repays and redeems parts of its loan, the money supply drops dramatically. then there is illiquidity and massive interest rate spikes the existing debt becomes unpayable and a death spiral is set in motion. so credit, the money supply, has to keep increasing
reply
67 sats \ 2 replies \ @Satosora 8 Aug
That is true. But it is time for us to suffer a bit so that we can improve our situation.
reply
40 sats \ 1 reply \ @TomK 8 Aug
yes, but that would collapse the banking system, which is the circuit of the distribution system that makes the big robbery via the credit mechanism around inflation possible in the first place. That will only happen when the entire system collapses and can no longer be sustained
reply
67 sats \ 0 replies \ @Satosora 8 Aug
Its only a matter of time.
reply