It’s good to be the King
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.”