Re:Austerity Is an Antidemocratic Strategy to Boost Capital
by injeolmi_love on Wednesday January 10, 2024 @10:03AM
(#38939633)
> bond-buying and tax-paying are the exact same thing, real consumption forgone by current workers
No. US Treasuries are one of the most liquid and easy to borrow against assets in the world. When institutions buy Treasuries, they use them as collateral to borrow against with new money created by the banking system. This money is then spent in the real economy. That’s very different from taxes.
No. US Treasuries are one of the most liquid and easy to borrow against assets in the world. When institutions buy Treasuries, they use them as collateral to borrow against with new money created by the banking system. This money is then spent in the real economy. That’s very different from taxes.