Care to let us know who would have bought all that debt the Fed now holds on its balance sheet? Even China could not have bought 1/3 of it. And who carries the US government on its shoulders until the debt ceiling is raised? I am curious
Should central banks be abolished?
- Thread starter zdreg
- Start date
There is plenty of demand for US treasuries:
Also, not sure why you're citing China. Foreign purchases of treasuries is a function of trade balance. The US is a capital exporter, so those dollars held away need to sit in some US-denominated asset. Not sure if you understand how treasury markets function and why the dollar (treasuries) have their position.
9 trillion? Please show us. The numbers you showed are peanuts.
And why foreign investors? Please explain who would purchase US debt which the Fed holds. In the absence of the Fed who would buy that amount of debt? National demand is already met. Leaves foreign investors. And trust me they would ask for a lot higher yield in the absence of the Fed.
And why foreign investors? Please explain who would purchase US debt which the Fed holds. In the absence of the Fed who would buy that amount of debt? National demand is already met. Leaves foreign investors. And trust me they would ask for a lot higher yield in the absence of the Fed.
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There's over $6trillon of USD held on foreign reserves lol:
There's also $2 trillion sitting overnight in the Feds reverse repo facility. I'm not even including retail deposits on money market funds or other short-term cash equivalents, or the use of treasuries that underly the global market for collateral. US treasuries are de facto money to institutional investors (more liquid than cash) and global capital.
Tell me what other country can compete with the US...
None of your points allude to the thread topic, which is that the US would be bankrupt in the absence of the Fed. Fed holds the largest portion of treasuries, no other lender exists that would have lent American consumers such vast amounts at such low yields.
There's over $6trillon of USD held on foreign reserves lol:
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There's also $2 trillion sitting overnight in the Feds reverse repo facility. I'm not even including retail deposits on money market funds or other short-term cash equivalents, or the use of treasuries that underly the global market for collateral. US treasuries are de facto money to institutional investors (more liquid than cash) and global capital.
Tell me what other country can compete with the US...
It's clear to me that you don't know what you're talking about. How would the US go bankrupt just because yields were higher? The US owes its debt in USD and can print dollars...
How did they create it in the first place BEFORE they exist??? You are an idiot...
The reference was to the 2008 financial crisis.
We are "tied into" that system now. Andrew Jackson (my favorite president, btw) tried it. Worked but only temporarily. Woodrow Wilson brought it back... then made a death-bed apology to all Americans for having done so.
The deal was done in the most skankiest of fashions.... Xmas eve, late night, closed door sort of thing.... and Wilson "signed on to it". That's why he makes my "Worst 5 US Presidents" list. (He used to be #1 worst, but need to reevaluate considering Obama/Biden for #1.... regardless, Wilson will remain on the list. And BTW, in case you're interested, the only Republican president on my "Worst Presidents" list is GWB!)
The deal was done in the most skankiest of fashions.... Xmas eve, late night, closed door sort of thing.... and Wilson "signed on to it". That's why he makes my "Worst 5 US Presidents" list. (He used to be #1 worst, but need to reevaluate considering Obama/Biden for #1.... regardless, Wilson will remain on the list. And BTW, in case you're interested, the only Republican president on my "Worst Presidents" list is GWB!)
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For the nth time I am now reminding you of the thread topic. The entire conversation is about a world without fed. Did you check who prints money today? It seems useless to discuss this further with you, you obviously either have no clue or aim to agitate.