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25 sats \ 9 replies \ @SwapMarket 18 Mar \ parent \ on: MMTers Vindicated by Musk — OOPS! econ
Not quite. It puts the burden to repay on the next administration. )))
Yes, but the Fed created the money to buy the bills/notes/bonds. They're obviously different monetary policies, but it's not like printing money out of thin air is novel.
There's a decent chance you're right about the DOGE folks just not understanding what they found. The Treasury does still produce actual specie. Perhaps what they found is related to that process.
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I mean, no — by far not enough.
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It sounds like they've misunderstood a few of their bombshells by multiple orders of magnitude.
We'll see. There is something like $3T of spending that's unaccounted for.
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In our current fiat money system, the Federal Reserve creates new base money when it buys assets by writing checks on itself.
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yes, new money is new debt. so it is accounted for. creating out of thin air, like what doge presumably has found, would leave no trace.
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It doesn't sound like this is without a trace exactly. They're supposedly creating new money to buy stuff. Is there no record of the purchases?
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I have no idea what Musk is saying by "computers send money out of nothing". payments are sent by banks to banks, via correspondent relationships. each transaction is double booked by sender and receiver. DoD etc are not banks. payments are not emails. there were fraudulent "advices of payments" in Russia in the nineties, created by newly founded fake banks with no capital in shitholes like Chechnya, but those were quickly identified.