I most certainly do. Try to understand my claim my friend. I said most of the government debt is a benefit to the domestic private sector. You just excluded intra-government debt even though the beneficiaries of those obligations in the real world are U.S. citizens. The U.S. "national debt" is both an asset and a liability. What the American people really experience it as in the real world is as an asset. As a burden it is just numbers on a spread sheet at the FED. In the real economy it is safest collateral and avenue for savings that exists in the world. As far as foreigners go who send us all of the real stuff that they make, it is equally an asset for them but unlike an ordinary creditor for us ordinary currency users, they don't have any power over us. No matter what happens, we win. They either send us their product in exchange for putting the dollars they get in our central bank. Or, if they don't want to do that any more, the dollar depreciates and we make our own shit here rather than let them make it for us. If there's upward pressure on interest rates the FED can simply choose not to fail and buy up bonds.gut;1519502 wrote:It's not a caveat. You really don't understand how any of this works, do you?
And so, given that the FED buying up bonds is effectively the same as the treasury having never issued them in the first place, the FED can do this at will any time it wants, (or sell them back any time it wants...effectively the same as the tsy issuing debt), it remains laughably absurd to be so utterly stark raving mad over the "national debt" when it's simply just overly complicated monetary operations and the real beneficiaries are U.S. citizens and they aren't burdened in any real way whatsoever.