On: In Fed and Out, Many Now Think Inflation Helps

[mistermann]

Recent history would seem to indicate the US can somehow simply buy their own debt. It seems impossible to me but its been working so far.

[tokenizer → mistermann]

You're right, however things can take a long time to run out of steam. Also, it's very interesting how much of economics relies on everyone believing in the system.

I'd recommend checking this video out: http://www.youtube.com/watch?v=BH9YPtk5VB4. This is what many people think. While some can definitely brush it off, many aren't.

[jayfuerstenberg → mistermann]

Well the US is exporting its debt (counterintuitive as that sounds) overseas by buying goods made abroad.

If I recall correctly 40% of US currency is actually outside the country.