Operation Epstein Fury

Internet Crank, MMT Is Inevitable, Crypto Curious. Is it self-contradictory? We'll see. De-dollarization is a myth. $14 trillion in eurodollars.

[Operation Epstein Fury @dlawbailey]

@Handre The Fed creates a very small amount of money. Banks create virtually all money.

Get the facts straight before you opine.

[Operation Epstein Fury @dlawbailey]

@fiatarchive No we're not because we will inevitably use MMT.

[Operation Epstein Fury @dlawbailey]

@Jaralf91 @RealKeithWeiner The only way I know of To earn interest on gold is to make gold leases and charge interest paid in gold.

That's fine. It has nothing to do with banking though.

The more pertinent question is whether you can use gold as "good collateral". Generally you can't.

[Operation Epstein Fury @dlawbailey]

@Handre There's a chance that AI solves the calculation problem. AI-to-AI markets - which already exist - are a black box spitting out answers far faster than any human can understand their reasoning.

America is a capitalism of bankers and lawyers. China is a socialism of engineers.

[Operation Epstein Fury @dlawbailey]

@Bitcoin_Teddy Easily one of the worst "jokes" I have ever heard.

[Operation Epstein Fury @dlawbailey]

@Cole_Walmsley Since banks, not governments, creat our money then banks are, by definition, the creators of inflationary capacity if not inflationary sentiment.

You should really know that if you're going to call yourself a money expert.

[Operation Epstein Fury @dlawbailey]

@Jaralf91 @RealKeithWeiner No, by structuring the balance sheet probabilistically, so liabilities are honored but deposits are transformed from a 100% liability to (basically) collateral for liquidity creation and provision.

Lending rather than custody and forex.

[Operation Epstein Fury @dlawbailey]

@RealKeithWeiner They don't.

[Operation Epstein Fury @dlawbailey]

@RealKeithWeiner I'm sorry but your industry relies on selling ignorance to old people. Many old folks have lost serious money on shady gold coin deals. But the price of gold is up so ... congratulations? The investment you sell is fine if people understand the good price and counterparty risks.

[Operation Epstein Fury @dlawbailey]

@AltcoinDaily I think the problem is disinterest. I feel like crypto is losing its relevance for the marginal buyer.

[Operation Epstein Fury @dlawbailey]

@grok @chadlupkes Government debt doesn't exist until the Treasury auctions a specific bond or note. Once a bond or note is paid off it obviously ceases to exist.

The government may have to issue more but "rolling over" debt is about net borrowing. Bonds and notes disappear when paid back.

[Operation Epstein Fury @dlawbailey]

@grok @chadlupkes When I say monetization "cancels the debt' I mean it moots the debt - reduces the government's net external obligations. Whatever interest and principal the Fed gets from the Treasury above its expenses goes back to the Treasury by law.

[Operation Epstein Fury @dlawbailey]

@chadlupkes I responded to Grok in that thread. I don't know how to make sure you can view it.

[Operation Epstein Fury @dlawbailey]

@chadlupkes https://t.co/iJyoSTnuCy

"From 2012 until 2021, the Federal Reserve remitted over $800 billion to the US Treasury"

[Operation Epstein Fury @dlawbailey]

@chadlupkes From the St. Louis Fed:

"The Fed’s income typically exceeds the cost of its operations. By law, the Fed’s excess earnings must be turned over to the US Treasury as remittances. The FRED graph above shows the weekly excess earnings that are turned over to the US Treasury."

[Operation Epstein Fury @dlawbailey]

@chadlupkes I don't know where this notion comes from that debt is somehow perpetual. There's not a big balance sheet in the sky that remembers all debt.

These are human to human obligations and they can be cancelled and netted out if humans want to do that.

[Operation Epstein Fury @dlawbailey]

@chadlupkes This happens all the time in the private sector. Equity investors come in and finance the cancellation of debt, especially with startups.

And banks cancel debt all the time. They swap the loan asset in their books for part of the capital stack. The obligation ceases.

[Operation Epstein Fury @dlawbailey]

@chadlupkes When you swap debt for cash, the obligation is gone. That's just a fact. As I showed you, if the Fed monetized debt the debt nets out on the government's balance sheet.

Yes there are mechanisms and those are important but the balance sheet doesn't lie.

[Operation Epstein Fury @dlawbailey]

@chadlupkes No, banks don't always create credit with new reserves. In fact, this was a big problem after the Financial Crisis and it persists in a global shortfall of eurodollars.

The idea that there is an excess of dollars is arguable. Most people don't see that.