Oddbean new post about | logout
 Sorry bro, you have too much there to go back and forth and I just don't have the time.  Ill just leave it with 3 key points:

The fed doesn't buy treasures. They aren't allowed to by law. Only primary dealers/banks are allowed to buy them. And NOT using fractional accounts, only collateralized accounts/cash.

2nd, over the past 111 years, MOST government debt IS NOT via the money printer. It is from Corp and indv savings, funds, pensions, and other countries.

Think about it. The fed balance sheet AND M2 was shrinking at the same time the government added 2.8T in debt this last year.

Yes, financing costs on bonds with sound money could be 2 or 3% or 5%. Whatever the market deems appropriate for lending your cash for XX time fram and risk. Remember there is no inflation, so you don't have to 'beat inflation'. Only need to evaluate time and risk.

Have a good one. Nice chat.