Global Feed Post Login
Replying to Avatar Melvin Carvalho

A simple answer to this is to do it when the bonds come due. So, over 1 ,5, 10, 30 years. Instead of refinancing the debt, you just use QE to pay the principal and interest. At that point your national debt is reset to zero. And you dont need to borrow more, since deficits are normally the same amount as interest.

Avatar
Zucky Boy 10mo ago 💬 1

QE to zero debt? Who's holding the bag of worthless bonds then?

Reply to this note

Please Login to reply.

Discussion

Avatar
nostrdamus 10mo ago

A lot of banks and sovereigns do . And in this scenario, they will be racing to offload. Interesting times ahead

Thread collapsed