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View Diary: GOP obstructionism becomes treason on debt ceiling (61 comments)

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  •  The Federal Government does not need debt. (1+ / 0-)
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    katiec

    Bonds do NOT finance government spending. That is the BIG LIE. When the government deficit spends, it first creates new money by spending it into the economy. Then it offers securities in exchange so it can pay interest on the money it just created. This keeps up the pretense of "necessary borrowing," and makes the bond merchants huge profits participating in this shell game.  Oh, and the bond vigilantes? They don't set US interest rates. Those are fixed by the Fed in the overnight market.

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