The Reality of Deficit Spending

The government has literally cut your taxes without asking anything directly back from you So you don't have a liability. You just have more money more net worth more bank deposits and they wish you both Yeah, obviously at least you can't to finance it. But then if you go to our next slide now we have a different situation Where the government is called to issue T bills to be honest. That's what they will do. In general banks and the federal reserve are taking care of absorbing the bond issuance that comes from the government They want bonds banks need bonds. And these are my bonds If private individuals buy those bonds their net worth goes up even if they're even if their cash on hand does