Banks cannot continue to buy government debt (bonds) to keep currency propped up.
Er, why not?
I know it's fashionable, especially in the US to say this sort of thing, but governments issuing debt is fundamental to how our economic system works. If they stopped doing it, especially the US which relies on it not only to fund their budget deficit but also their balance of payments deficit, we'd have a massive recession, worse than the 1930s.
Er, why not?
I know it's fashionable, especially in the US to say this sort of thing, but governments issuing debt is fundamental to how our economic system works. If they stopped doing it, especially the US which relies on it not only to fund their budget deficit but also their balance of payments deficit, we'd have a massive recession, worse than the 1930s.