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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.”

  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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