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Re:If There Is Such a Thing as Economic ‘Good Times,’ These ... by NTDF9 on Thursday September 13, 2018 @04:19PM (#17982160)
What happens if there is too much debt (as assets) on the Fed's balance sheet? Can they just write them off?
Re:If There Is Such a Thing as Economic ‘Good Times,’ These ... by mpax on Thursday September 13, 2018 @04:33PM (#17982276)
They can just sit there in perpetuality, there’s no swat team going to bust in the door because one leg of government lent to the other.
Re:If There Is Such a Thing as Economic ‘Good Times,’ These ... by tabtab on Thursday September 13, 2018 @06:20PM (#17983192)
The biggest downside is that if there is a big slump, the gov't doesn't have spending money for a stimulus. We could then get stuck in a protracted rut or deflationary spiral. In the longer term, GDP growth can make the debt moot (if more is not added), but if we have a big slump sooner, we are screwed.
Re:If There Is Such a Thing as Economic ‘Good Times,’ These ... by acct1771 on Friday September 14, 2018 @02:50PM (#17989809)
Calling the Federal Reserve an arm of the government is misleading at best.
Re:If There Is Such a Thing as Economic ‘Good Times,’ These ... by NTDF9 on Thursday September 13, 2018 @05:20PM (#17982716)
Does that erode trust in currency and cause hyper inflation? I suspect no.