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by SubiculumCode 1770 days ago
No one "lent" us money. It's a fiat currency with a self-imposed limit on new money creation.
1 comments

> No one "lent" us money.

Obviously you have absolutely no idea what you are talking about.

BOND. Issued by US government. Is a promise that US will pay back the price of the bond at some predetermined future date and in the meantime it will also be paying interest in regular installments.

Others (including other countries) buy US bonds, which finances US spending. You know, whenever there is this big debate about whether to close US government or not?

So it is kinda stupid to say "no one lent us money", because, you know, they did.

Posting like this to HN will get you banned, regardless of how competent you are or feel you are. Please read the rules and stick to them: https://news.ycombinator.com/newsguidelines.html.
But as a fuller reply to your overly condescending post is that a)yes the BOND procedure is borrowing, but b)the majority of new money is created through the fractional reserve system, which requires banks to hold 10% in reserve when creating loans. When banks give out new loans they are in fact creating almost 10 times as much new money, well exceeding the whole bond mechanism.

Now I admit that this is not my field, but it certainly seems that if the majority of new money that is created is through the fractional reserve system, i.e. by fiat, then the majority of the money that is spent buying new BONDS is from fiat-produced money.

Wow, you are a dick.
Please do not respond to a bad comment by breaking the site guidelines yourself. It only makes things worse.

https://news.ycombinator.com/newsguidelines.html

You're right dang, sorry. I let my emotion get to me on that one.