I literally showed you in a PREVIOUS thread that the GAO claims that deficit spending is deflationary.
You just linked to a paper about the trade deficit, not the budget deficit.
The words deflation or deflationary aren't even in it once.
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I literally showed you in a PREVIOUS thread that the GAO claims that deficit spending is deflationary.
Maybe you should fucking read the paper and not be a god damn moron. They use the words "inflation" the opposite of inflation is DEFLATION.You just linked to a paper about the trade deficit, not the budget deficit.
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The words deflation or deflationary aren't even in it once.
Also - how do you count treasuries as collateral to Federal Reserve Notes when Federal Reserve Notes are printed to buy treasuries? LOLOL.
That's literally "monetizing the debt". So yeah - go ahead - count treasuries as assets if you want to have hyperinflation.
The FED counts treasuries as an asset because in banking parlance that's what they are. But the FED isn't a normal bank. They don't earn dollars and then buy treasuries with them. They are given dollars by the treasury from a printing press.
Maybe you should fucking read the paper and not be a god damn moron. They use the words "inflation" the opposite of inflation is DEFLATION.
LOLOLOLOL.
I even screenshotted you the pertinent part.
They didn't print dollars to buy the gold. But yes, if they did print dollars to buy the gold that would have been inflationary. But - the US never did. Which is why it is the VALID COLLATERAL OF THE FEDERAL RESERVE.Also - how do you count treasuries as collateral to Federal Reserve Notes when Federal Reserve Notes are printed to buy treasuries? LOLOL.
If they printed dollars to buy gold, would the gold count as collateral?
That's literally "monetizing the debt". So yeah - go ahead - count treasuries as assets if you want to have hyperinflation.
Counting their Treasury assets as libilities wouldn't stop hyperinflation, it's just bad accounting.
The FED counts treasuries as an asset because in banking parlance that's what they are.
Probably why I'm pointing out your error.
But the FED isn't a normal bank.
But their assets are still assets.
They don't earn dollars and then buy treasuries with them. They are given dollars by the treasury from a printing press.
The Treasury doesn't give the Fed dollars. The Fed can create dollars independently.
Out of thin air.
No paper required.
Seriously, fuck you.Here's a hint, if you want to prove deficit spending causes deflation, link to a paper that says that.
Linking to a paper about the "Trade Deficit", which is different than a "Budget Deficit" is no help.
You didn't actually even say anything. Some dumb. meaningless blurb.
Look "Todd". You're just a fucking retard. And I think you've just proven it to everyone here.
They didn't print dollars to buy the gold. But yes, if they did print dollars to buy the gold that would have been inflationary. But - the US never did. Which is why it is the VALID COLLATERAL OF THE FEDERAL RESERVE.
It's not bad accounting, dumb ass, because the only way a "treasury" is considered collateral is if you monetize it. Which the Federal Government would never due BECAUSE OF HYPERINFLATION.
I have no error.
Their assets are not assets in the collateral sense in the case that the Congress closes the Federal Reserve. Hence why GOLD behaves the way it does.
Maybe help me out and point out how fucking retarded Todd is. The guy literally refutes EVIDENCE in front of his dumb assYou are truly clueless.
Maybe help me out and point out how fucking retarded Todd is. The guy literally refutes EVIDENCE in front of his dumb ass
But they didn't buy gold you moron. Learn what capitalizing a bank is. The gold wasn't bought with printed dollars or rather - if it was - the inflation that caused has already been washed through the system 90 years ago.They didn't print dollars to buy the gold.
But they could buy gold, instead of Treasuries and MBS. Or oil, corn, wheat, pork bellies etc.
But yes, if they did print dollars to buy the gold that would have been inflationary.
Right. Just like buying bonds was.
It's not bad accounting, dumb ass, because the only way a "treasury" is considered collateral is if you monetize it.
A treasury is considered collateral if you own it. Whether you bought it with cash, check or charge.
Which the Federal Government would never due BECAUSE OF HYPERINFLATION.
Renaming the collateral a liability doesn't magically save you from potential hyperinflation.
It just makes you look stupid.
I am ready to see the fat cats die on the vine.
"Deficit spending lowers the value of the dollar and increases the trade deficits"
Maybe help me out and point out how fucking retarded Todd is. The guy literally refutes EVIDENCE in front of his dumb ass
You are truly clueless.
But they didn't buy gold you moron. Learn what capitalizing a bank is. The gold wasn't bought with printed dollars or rather - if it was - the inflation that caused has already been washed through the system 90 years ago.
The Treasury cannot be collateral for the FED, because as soon as they have to hand over that collateral dollar-per-dollar then the dollar has to revalue.
If you count how many treasuries are on the books, that'd devalue treasuries by some 90%. IDIOT
I'm sorry you're a fucking retard.Deficit spending can lower the value of the dollar. Which would be inflationary, not deflationary.
and so you can't fucking figure out that increasing the deficit does the opposite.
Increasing the deficit does the opposite of deficit spending? Let's check the tape.....
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Damn. Look at that. LOL!
Now you really prove how fucking retarded you are.But they didn't buy gold
No, they bought other assets. Assets. ASSETS.
They didn't buy liabilities.
The Treasury cannot be collateral for the FED
Collateral, asset, whatever. Not a liability.
because as soon as they have to hand over that collateral
Hand it over to who? Why would they "hand it over"?
You're making less and less sense. What are you drinking?
If you count how many treasuries are on the books, that'd devalue treasuries by some 90%.
Why does counting them change their value?
Toro