Reply To: Some questions


(1) It’s not the Treasury selling more bonds, it’s investors who bought them in the past and have been holding on to them until now.

Holders are selling in anticipation of higher rates of price inflation from more fiscal expenditures in the future. Higher rates of price inflation will mean higher interest rates on new bonds issued by the Treasury and thus, lower prices for the older bonds they have been holding.

(2) Ludwig von Mises wrote that “Thinking and acting are inseparable.” Take a look at Human Action, p. 177. No observer of a person can know the thoughts of a man, whether or not there are outward signs of action.

Furthermore, a person who shows no outward sign of action is not by that fact alone demonstrably incapable of action. He can still act, potentially. For example, we would not declare a man unconscious from intoxication a non-human until he wakes up or even a man in a coma.

A similar point could be made about newborn babies.