Jul 30, 2017 · 1 min read
Where to start?
- The Fed is privately held but subservient to Congress. Any authority it has that remains after how its statute constrains it is only the authority conferred on it by statute. It’s not the government — congress, executive and the judiciary constitute the government.
- Inflation hasn’t been a problem for 30 years, despite the non-federal sector receiving a net injection of currency most years (pretty much all but Clinton’s). If there is slack in the economy (unemployment and spare industrial capacity) currency injection will initially only take up that slack. Only when the slack is fully taken up will competition for scarce resources bid up prices.
- If the US can pay in USD without limit, how is its “debt” in USD a real debt? How can a the foreign holder, or any other, of a portfolio of USD-denominated securities have any kind of hold over the US?