Quote:
Originally Posted by gfejunkie
And where does that demand come from?
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Ideally, it arises from well-designed government programs that put big dollars into the pockets of low income earners, so they can in turn create substantial new demand for crap produced in low-wage Asian countries and sold by Walmart. An additional benefit is that this boosts our accumulated trade and current-account deficits to even healthier levels.
The Federal Reserve, too, plays a starring role. Over the last six years, it has loaded up its balance sheet to the tune of almost four trillion
additional dollars. Of course, that created demand for all sorts of debt instruments, including but not limited to new U.S. Treasury issuance.
In turn, that activity has created a great deal of new demand for ...
... well, give me a minute. I'll think of something!
Probably run out of room after S A R
