Comments by "D W" (@DW-op7ly) on "The PIIGS, China, and Vietnam: Private investors chase higher yields and risk, send USD back to US" video.

Yes when I debate with Americans. Many will point out how great the economy has been since the 2008 subprime crisis. I point out Americans should really be asking why their economy hasn't done better??? Especially when at the time they were near zero bound interest rates to boot. Because now they are literally going to pay for that excessive borrowing, as interest rates rise
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In the past we saw how the US FED parked that debt on its balance sheet with QE But from 2017 to 2019 we saw the FED unwind about 600 to 700 billion in debt off its balance sheet with a mini QT. Which froze up the repo market in 2019. Where in turn they did another QE2 and then proceeded to raise those interest rates since then.
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The dollars the US Treasury printed up, like during QE Dosent just disappear it went onto the US FED balance sheet And we know the US FED tried to unwind about 600 to 700 billion of that debt By allowing 50 to 60 billion of that debt mature off their FED balance sheet every month (from Q3 2017 to Q3 2019). Where the US Treasury would issue new corresponding debt for the public to buy. The problem is the US "people" are are the biggest buyers of that debt (directly/indirectly) And that dumping helped to freeze up the Repo markets Where the FED had to come back in and buy over 4 trillion in newly issued US Treasury debt To be fair last I checked they managed to dump some of that debt. Lowering that amount down to around 3.2 trillion, and Covid was around the time of this QE2 buying as well
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@johntse8655 US Treasury Bonds are freely tradable on its secondary markets But if those Bonds were to be held in a Financial Institution that the USA could get their hands on those bonds….
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