Hello again Mike! Thanks for taking the time to explain the direct purchasing of treasury debt to me. So correct me if I'm wrong, what that means is that the government runs massive deficits in an attempt to reflate the economy, and instead of auctioning off treasuries to float the debt, they just have the Fed literally print money to pay it off? If I interpretted that correctly, then yes, that would be disastrous and we would be on our way to becoming like the Weimar Republic; however, I don't believe our government or our central bank is that suicidal because if they hyperinflated, the game would come to an end, for good.
Submitted by Bulleri on Tue, 2008/08/19 - 3:00pm »
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