Funding of U.S. deficits by monetary creation reaches 90% in late 2019
“Total deficit spending, the extent to which monies spent by the federal government exceeded taxes collected, was a staggering $422 billion in just the last 12 weeks. In total, $367 billion of the funding for this increase in the national debt was provided at very low interest rates, via the mechanism of the Federal Reserve simply creating the money needed to fund the government spending.”
USAGOLD note: This assessment ties in with a post made here (Scroll below) a few days ago in which Greenlight Capital’s David Einhorn says no matter what you call what is now going in the repo market it amounts to monetizing the debt. “[O]ver the thousands of years of economic history,” says Amerman, “variations on this theme of just creating the money to spend, have been attempted many times in many nations, by governments and elites who have seen personal financial or political gains by doing so. It has never worked out over the long term. Not once.”
Repost from 12-15-2019
