Comments by "k98killer" (@k98killer) on "" video.

  1. ​ @LeoImar  I hope you're just trolling.
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  2. I can print a multi-quadrillion dollar economy in an Excel spreadsheet. The math works, but I don't think anyone will accept it as a medium of exchange.
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  3. Less than 1/3 of Treasury debt is held by foreigners. The lower it goes, the weaker the dollar will become, but it isn't likely to becone a monetary crisis.
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  4. Broad money is created when banks issue deposits against their assets. Transfers between banks use accounts at the Federal Reserve or a clearing house on a net basis. The money printed by the Fed is only useful to banks for this net settlement or as an interest-bearing account to replace Treasury bonds. When the Treasury borrows and spends, the associated economic activity in the private sector can lead to a higher demand for money, so banks issue deposits in excess of the deficit expenditure, which is analogous to the Keynesian multiplier. Banks can also issue deposits to buy Treasury bonds from the non-bank private sector, which was the original form of QE before the Fed was created; in doing so, Treasury debt becomes private sector money through banks. If the Fed directly monetizes the debt, the subsequent transfers into the private sector create more bank deposits backed by Fed account balances rather than directly backed by Treasury bonds. The net effect of deficit spending is thus an expansion of M2. If the government balanced its budget and ran a surplus, there would be some contraction in associated private sector activity, but this would not guarantee a reduction in M2 greater than the reduction in outstanding debt. As long as the private sector is sufficiently active and productive, demand for money will be high enough that banks will not contract and will instead choose other assets to back their deposit liabilities. The complication here is in regulations and VAR models that might interfere with this process. I believe this is why Bessent is pushing for bank deregulation: to make sure banks are not impeded by regulations from supporting economic expansion in excess of federal debt expansion and cushion the private sector effects of changes in government expenditures.
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  5. ​ @quattrocity9620  never heard of this before. I'll look into it. Thanks for the heads-up.
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