On one hand, Treasury bought back a bunch of debt that was issued. So it's kind of like paying down the deficit I guess.
On the other hand, some major institutional players just made a fortune in a quick cash flip, selling discounted treasuries back and pocketing the difference.
The real story is who bought then sold those notes, at what price/discount if they bought from the Fed for example, and if they had prior knowledge the notes would be bought back.
This may just be paying down the deficit but me thinks is probably a stealth bank bailout. We can't have headlines that a big bank is getting a gov't cash infusion without tanking the credit rating of that bank, but no one looks twice at a nice profit from some Treasury sales, especially if it was a batch of them to help conceal who "needed it".
I wonder how we will be able to get rid of the $38T debt. Maybe we can find some trillionaires who violated our human rights and seize their assets. Or else declare a jubilee.
Unfortunately, it’s not possible to pay off the national debt with Federal Reserve Notes.
Each dollar in existence was created out of thin air by the Federal Reserve and put into circulation. The US debt is basically the total number of dollars created by the Fed and now in circulation.
So, to pay off the debt means no dollars left in the economy. There has to be another currency to use while collecting up all the federal reserve notes and returning them to the Fed.
Lots think this may be bitcoin or some other digital currency, others think we’re returning to a gold standard or bimetallism.
On one hand, Treasury bought back a bunch of debt that was issued. So it's kind of like paying down the deficit I guess.
On the other hand, some major institutional players just made a fortune in a quick cash flip, selling discounted treasuries back and pocketing the difference.
The real story is who bought then sold those notes, at what price/discount if they bought from the Fed for example, and if they had prior knowledge the notes would be bought back.
This may just be paying down the deficit but me thinks is probably a stealth bank bailout. We can't have headlines that a big bank is getting a gov't cash infusion without tanking the credit rating of that bank, but no one looks twice at a nice profit from some Treasury sales, especially if it was a batch of them to help conceal who "needed it".
Ok, can someone tell me the implications of this buyback please?
I don't know either but my search engine came up with:
From: https://treasurydirect.gov/auctions/announcements-data-results/buy-backs/buy-backs-old/
I wonder how we will be able to get rid of the $38T debt. Maybe we can find some trillionaires who violated our human rights and seize their assets. Or else declare a jubilee.
Well theres already 7.7 Trillion thats been recaptured so theres that.
https://www.usdebtclock.org/#
Look at the Bottom on the right side..................
Ye olde debt clock! I forgot about it. It's fun to take another look, thanks.
Unfortunately, it’s not possible to pay off the national debt with Federal Reserve Notes.
Each dollar in existence was created out of thin air by the Federal Reserve and put into circulation. The US debt is basically the total number of dollars created by the Fed and now in circulation.
So, to pay off the debt means no dollars left in the economy. There has to be another currency to use while collecting up all the federal reserve notes and returning them to the Fed.
Lots think this may be bitcoin or some other digital currency, others think we’re returning to a gold standard or bimetallism.