Reply To: Some questions


“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.”

Sorry, the question was poorly worded. I meant to say potential inflation/spending.

My understanding is that the only way for the government to spend more than revenues is to sell treasuries. But, where would the price inflation come from that bondholders are expecting? My thought was that the potential increases in government spending is what people are thinking will cause price inflation.

“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.”

Can you go a little further in this? How exactly can an unconscious potentially act? Is it that, even if to us they are not demonstrating action, that unconscious people are still acting but fail to achieve their ends?