Thursday, January 2, 2020

No, this is can kick

The Fed's charter prohibits its from directly purchasing bonds or bills issued by the US Treasury: that process is also known as monetization and various Fed chairs have repeatedly testified under oath to Congress that the Fed does not do it. Of course, the alternative is what is known as "Helicopter Money", when the central bank directly purchases bonds issued by the Treasury and forms the backbone of the MMT monetary cult.
Helicopter money is a direct, untraceable loss by the Fed. For example, erasing bonds it holds.

No comments: