raghu: > If the Fed simply bought newly issued bonds from the Treasury worth > $600B, then the Treasury could have simply turned around and spent it
This is what the Treasury will do. The Treasury pays only the interest, not the principal. The Treasury never pays the principal since the begining. The US Treasury can keep rolling, and, indeed, increasing, the principal as long as there is no bank run on the US. I don't think such a bank run on the US will happen any time soon. Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
