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It’s good to be the King

July 6, 2009

crown July 6 (Bloomberg) — The U.S. Treasury has raised $896.054 billion in new cash this year selling Treasury securities. The Federal Reserve has purchased $197.723 billion in Treasury securities, or
22.1 percent of the new cash raised in 2009 by the Treasury.

Rocky notes that this is the classical definition of a “monetization of debt.” A less generous term is “printing money.” If Rocky pursued this strategy, it would be called “counterfeiting.”

As Mel Brooks would say, “It’s Good to be the King.”

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  1. allocator
    July 10, 2009 at 11:28 pm

    You make it sound like a bad thing. 🙂

    Event more blatant than that is California simply just mailing people I.O.U.’s. That isn’t even money! And try sending YOUR I.O.U. to the state Treasury as a tax payment.

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