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Stein
Stein
16 years ago

Good show, but the US Treasury issues treasury bills, bonds and notes, not the FED. The FED sometimes monetizes debt by buying the instruments from the Treasury and then uses them to enact monetary policy by either holding the instruments (increasing money supply) or selling the instruments and holding cash (decreasing the money supply).

Similar outcome, but different means. The FED needs the Treasury to issue debt to pull off what has been happening. Likewise, the Treasury needs authorization from congress. No congressional approval (or presidential signature) = no new debt = much fewer options for manipulation by the FED. Every time we vote for someone who voted for the stimulus bills, we take responsibility for the outcome.

Jason
Jason
16 years ago

“This bill is a turd” ROFL!!!