It is a myth known as "modern monetary theory" that a central bank can control inflation by tweaking interest rates. While inflation is the result of increases in the money supply, those increases come about as a result of big government deficits, and the Fed then buying Treasury debt, which finds its way into the economy when the government spends the money. Politicians and their sycophants in the media will seek to blame all sorts of other boogeymen, but the bottom line is very simple to understand: inflation is a tax, one of the most regressive taxes there is.

 

Five percent is what they are paying other people who buy treasuries.  The Fed won't be charging the US government a dime on the fantasy money it prints up for them.  Nor will that money ever be paid back.

It is theoretically possible for the Fed to monetize the entire federal debt by buying back all Treasury bonds and then just forgiving the debt the Treasury would owe the Fed.

 

The Traveling Wilburys  -  End of the Line

@Right_in_Virginia

Where is the example of 'virtue signaling'?  Please show the exact quote.  Or is this yet another example of you posting the first dishonest thing that pops up in your head?

The entire post was a "virtue signal".  Use the word "I" three times in succession.

I want nothing to do with those sorts of people. I will not vote for them, I will not associate with them.