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<blockquote data-quote="vantexan" data-source="post: 5411916" data-attributes="member: 24302"><p>Those companies can&#039;t print money but the government can.&nbsp; And yes to cover deficit spending the government printed money.&nbsp; The Federal Reserve did.&nbsp; And to keep the economy afloat they handed out stimulus checks during the pandemic.&nbsp; Did the government have the money to do that?&nbsp; No.&nbsp; And it wasn&#039;t the capitalist system that produced the money.&nbsp; The government just produced that money out of thin air.&nbsp; To cover our deficit spending the government sells treasuries.&nbsp; The difference between now and when we had high inflation in the late 70&#039;s-early 80&#039;s is our debt to GDP ratio was much lower back then and government spending was covered by long term bonds.&nbsp; Now government spending is covered by short term treasuries because no one wants to get locked into 30 year bonds at super low rates.&nbsp; And as those T-bills roll over the government is faced with higher interest rates to service them.&nbsp; And all of this was pointed out by economists including Larry Summers who is not a conservative.&nbsp; The government did it anyways.</p></blockquote><p></p>

[QUOTE="vantexan, post: 5411916, member: 24302"] Those companies can't print money but the government can. And yes to cover deficit spending the government printed money. The Federal Reserve did. And to keep the economy afloat they handed out stimulus checks during the pandemic. Did the government have the money to do that? No. And it wasn't the capitalist system that produced the money. The government just produced that money out of thin air. To cover our deficit spending the government sells treasuries. The difference between now and when we had high inflation in the late 70's-early 80's is our debt to GDP ratio was much lower back then and government spending was covered by long term bonds. Now government spending is covered by short term treasuries because no one wants to get locked into 30 year bonds at super low rates. And as those T-bills roll over the government is faced with higher interest rates to service them. And all of this was pointed out by economists including Larry Summers who is not a conservative. The government did it anyways. [/QUOTE]

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