Bloomberg/Ye Xie/9-23-2022
“This is a big break for the government and taxpayers. It makes the debt more manageable and easier to pay back. It’s lousy for bondholders. The money they’ll be repaid by the government will be worth a lot less than the money they put up.”
USAGOLD note: It’s not just bondholders who suffer – from Tokyo to Beijing to Berlin and beyond. Ordinary citizens with money in CDs, money market accounts, and the like, also suffer as their purchasing power slowly goes up in smoke…… As many thoughtful commentators have suggested, we are in a whole new financial era. We get the feeling that the real reaction to all of this hasn’t even begun.
