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57 sats \ 4 replies \ @Satosora 8 Aug \ parent \ on: "Abysmal" Treasury Auction- James Lavish econ
RIght, I get that.
But if they just paid of some of it...they could strenghten the dollar again.
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
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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