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A comment on Federal Reserve lent $300B in emergency funds to banks in the past week. Parent comment

Re:Federal Reserve lent $300B in emergency funds to banks in... by JakeAl on Sunday March 19, 2023 @10:28PM (#35226541)
It's all a loan, whatever name you attach to it they have to borrow to print money.

Reality check: US debt to GDP ratio is over 120% and the US doesn't have the credit to borrow anymore. We're looking at hyperinflation and a long depression unless they stop printing money and we experience massive austerity/spending cuts. We are literally in an economic death spiral (that's what a debt to GDP ratio of > 120% means) and that death spiral will be irreversible by 2028 (with US insolvent by 2042) as that WAS the timeline for when all of our loan payments for all of that printed money/bailouts goes only to the interest on the loans and not the principal. Unless of course, they change all the rules and it's laws for thee but not for me and debt starts getting erased. And/or war, which is historically how they do it.

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Re:Federal Reserve lent $300B in emergency funds to banks in... by noloblo on Sunday March 19, 2023 @10:40PM (#35226625)
so either a banana republic or japan
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Re:Federal Reserve lent $300B in emergency funds to banks in... by xmcqdpt2 on Sunday March 19, 2023 @11:19PM (#35226858)
Insolvent in the sense that they won't be able to pay the debt? That's not very likely given that the US controls the emission of its own currency, which is the currency the government bonds are denominated in.
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Re:Federal Reserve lent $300B in emergency funds to banks in... by colechristensen on Sunday March 19, 2023 @11:48PM (#35227036)
> US doesn't have the credit to borrow anymore

This is a ridiculous statement. The market for US treasuries is perfectly healthy.

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Re:Federal Reserve lent $300B in emergency funds to banks in... by notch898a on Monday March 20, 2023 @12:01AM (#35227126)
The market for treasuries is so healthy that it's destroyed the market for all the dog shit long term MBS, older long term treasuries, and even caused many otherwise unsophisticated depositors to dump their bank deposits into products like I-bonds and T bills.
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Re:Federal Reserve lent $300B in emergency funds to banks in... by Dylan16807 on Monday March 20, 2023 @02:47PM (#35236595)
When does the hyperinflation start? For more than half a year the inflation rate has been 4%.
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