kinthelt ([info]kinthelt) wrote,
@ 2009-03-20 14:08:00
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Current location:Canada, Manitoba
Entry tags:via ljapp

Inflation

Does anybody else see the problem in the US government buying its own debt? I fail to see the difference between this and printing money.

While inflation may not be crazy right now; indeed, deflation is the biggest worry. The US dollar is the reserve currency of the world and any hyperinflationary pressures on it would most likely prove disastrous in the medium term.

Posted via LiveJournal.app.


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Tony's post
[info]kinthelt
2009-03-29 05:08 pm UTC (link)
When I deleted the duplicate, the entry with the comment in it got wiped. I think the LiveJournal app for the iPhone is broken.


You posted this twice and your sentence construction makes me wince. More importantly, however, you seem to have missed the difference between the Federal Reserve Board and the US Government. They are technically different entities, although the Fed buying US debt does still add inflationary pressure on the USD. Fortunately, the dollar has been getting stronger of late so they can actually get away with this for a while.


I apologize for my sentence construction. It would be improper for me to make excuses, but the truth is the screen on my iPhone's LiveJournal app is small and I lost my train of thought mid-sentence.

Yes, technically there's a difference. On paper. In reality, the Fed is a branch of the US government. Same with Fannie Mae and Freddie Mac.

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