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| User Info | Ukraine Has LOST, And So Have We; entered at 2022-06-14 11:33:14 | |||
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Eleua Posts: 23754 Registered: 2007-07-05 N 47.72/ W 122.55 
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@Tickerguy Agree that the problem is Congress and deficit spending. 100% If there was no "'buyer of last resort" in the system, and the Treasury Dept had to sell debt at auction in the open market (like corporate bonds), would not the problem have been cut off earlier? If the Treasury had to sell $2.77T, and the demand wasn't there at 1.5%, then the system should naturally digest it at much higher rates, and thus choke off the palatability of this kind of spending. Having an intermediary is convenient, and if they can absorb this debt, even temporarily, it helps the Treasury Dept and Congress to spend more than the market would normally bear. I guess this works until they either have to stop being the buyer of last resort, or have to disgorge what they currently have. Am I missing something? 
2022-06-14 11:33:14
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