You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #36: No, it doesn't and no it isn't [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
This topic is archived.
Home » Discuss » General Discussion Donate to DU
girl gone mad Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jul-31-11 11:36 PM
Response to Reply #34
36. No, it doesn't and no it isn't
Edited on Sun Jul-31-11 11:39 PM by girl gone mad
Bondholders can always sell their Treasury bonds when they desire to do so. They may take a loss, but that's neither here nor there.

When the bondholder sells to a bond dealer, the dealer creates money in the form of a credit, using the bond as leverage.

If you want to argue that Treasury buying up bonds is inflationary, you need to explain why exactly you think it's inflationary. "increase in dollars relative to bonds" is meaningless since the bonds are just as liquid as the dollars at all times except in a liquidity trap (you got that backward) and they are even more essential for the facilitation of credit creation (thus inflationary) than dollars.
Printer Friendly | Permalink |  | Top

Home » Discuss » General Discussion Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC