Re:Where has all the money in the world gone?
by Retric on Saturday June 23, 2012 @07:00AM
(#4150563)
Your making several mistakes with that post. #1 the 14 trillion debt is not a single loan it's millions of them. People pretend that bonds are the same thing as money all the time, but there not. If the government started paying back 0.1% of it's debt a month you would see huge cash flows, but though taxes the same money would be used to pay down different loans several times.
PS: There are valid reasons for treating bonds as cash equivalents, but M1, M2, M3, etc are simply different ways of looking at the money supply.
PS: There are valid reasons for treating bonds as cash equivalents, but M1, M2, M3, etc are simply different ways of looking at the money supply.