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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?


To: KLP who wrote (285868)12/31/2008 9:32:12 PM
From: TimF  Respond to of 793534
 
Or if they monetize the debt than its people with savings holding the bag.

(Technically a lot of it is already monetized, the fed buys securities or sometimes other assets and credits the holders account with money. If it sells the assets later, it soaks up the extra money to avoid inflation but then the government has to borrow the funds to buy up the assets.)