Money For the Rest of Us National Debt Masterclass Part Two
May 15, 2024
Explore how households and businesses can opt out of the national debt scheme. Learn about central banks monetizing debt through quantitative easing. Understand the implications of infinite money creation, debt monetization, and inflation. Delve into Federal Reserve liabilities, solvency risks, and GDP dynamics. Gain insights on money creation, quantitative easing impact, and quantitative tightening on asset prices.
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National Debt Realities
- The national debt will likely never be paid off.
- Governments control the terms of their debt, including interest rates.
Government Borrowing and Inflation
- Government borrowing doesn't prevent private sector borrowing.
- Excessive borrowing can cause inflation.
Monetizing Debt and QE
- Central banks and governments can monetize debt through quantitative easing (QE).
- QE's inflationary impact depends on subsequent monetary and fiscal policies.