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View Diary: The debt ceiling dance and the trillion dollar coin (218 comments)

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  •  It's not monetizing the debt (1+ / 0-)
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    psyched

    "monetizing" refers to the Central Bank buying bonds directly. That won't happen her. What would happen is that the Mint would create fiat money and make a bank deposit. Credits would be issued by the Fed as fr any other customer. The Treasury then eventually gets the mint's profits into the Treasury General Account (TGA) and the Treasury can then pay debts and spend appropriations.

    No debt and no "monetization" involved. What is involved is your sovereign Government which constitutionally has the right to create currency exercising that right to allow us to spend without borrowing back money we previously issued. Quelle tragedie! We stop giving welfare to investors who want a risk-free unvestment, and borrowing back money we can create at will!

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