by Chris Black
It’s a small club and you ain’t in it.
BREAKING NEWS
THE TREASURY DEPARTMENT SAYS IT WOULD REPURCHASE US GOVERNMENT DEBT NEXT YEAR FOR THE FIRST TIME IN DECADES
It has arrived.
— Gold Telegraph ⚡ (@GoldTelegraph_) May 3, 2023
Man Peter Schiff must be furiously masturbating to this tweet.
They’re going to print enough money to buy the debt from themselves next year, kek.
The good news is that Biden will get to say he reduced the Federal debt by more than any other president in history though.
Joke aside, here’s the deal:
Banks are required to keep their deposits in “safe” investments.
So they mostly just buy AAA rated government bonds.
All these banks have older bonds that are only paying 1% when the inflation rate is 15% and new bonds are paying 8%, so no one will buy the bonds from them unless they “discount” the price 20% or more.
So by raising rates (the Fed) and having high inflation (Gov spending) these banks, who are FORCED to buy government debt, basically “lost” 20% to 40% of their customer’s money, and most of them are basically insolvent IF their customers all take out their money at once.
The Fed is basically saying that THEY will buy the shit 1% bonds from the banks (at face value) and sell “new” bonds at 8% or more for the same face value.
They will have to print TRILLIONS of dollars to do this, which will make inflation even worse, but the banks will be ok, while everyone holding dollars basically “pays” for this with inflation.
The reason they want to get us onto the CBDC is because a digital currency can conceal hyperinflation from the average person just like EBT cards conceal the bread lines.