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Been talking with an old school fiscal conservative with pre-neocon beliefs. Republican isn't even the way to describe it. Very wild to hear someone support The Federal Reserve unironically while also believing treasuries could default provided the USA stayed dominant in oil trading currency. Like it isn't even MMT or keynesianism with some of these guys. IDK is it Chicago school or something? I am so out of the loop on that type of economic "study" these days because of is/ought and how things actually work.
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@BowsacNoodle I would guess Chicago school, a pre-neocon fiscal conservative that supports the Fed but thinks treasuries can default as long as the petrodollar holds sounds vaguely like Chicago school. Certainly a wild example in this day and age, but it sounds like a monetarist plain and simple. It's all about the money supply to them, which fits with what you describe.
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@BowsacNoodle
I think he's onto something. At some point, the debt is too high, and there's no paying it back. It's not a coincidence that someone as big as BlackRock has been in the crypto sphere for a while now. They won't pay back the debt, and when the petro-dollar crumbles, they'll switch to USDC.
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@pepsi_man Could be. Buy treasuries are basically promise to pay based on, presumably tax revenue. If a man with a gun can say pay your taxes in USD or go into a concrete cell, you have a promise to pay (until mass revolt).
BowserNoodle ☦️
Gundog
pepsi_man
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