IF (and that's a mythical IF for our current state of affairs), you raised taxes, reduced spending and used the surplus to pay down the National Debt, it would reduce the money supply and have an impact on inflation. These last two things are not going to happen, so it's all academic. In the current environment, the government will take your money and spend it as they see fit - and as you would never spend it - so it's a fallacy and lie for politicians to say it will reduce inflation.
The bond buying program the Fed had been doing '08 or so has had the same effect as deficit spending, dumping cash into the economy. They started tapering their purchases, but I don't think they ever completely stopped before the pandemic, then they went all in, buying another $6 trillion. They just stopped that buying program last month. I expect they will take so long to sell these bonds that many will just pay out. I
I see no way out of our current Federal balance sheet without significant pain for us. Most politicians do not have the will to this.
On a side note, I picked up Fortitude by Dan Crenshaw some months ago, read the first two chapters and put it down my stack. I picked it back up yesterday evening and finished it. Crenshaw is a patriot, a thinker, and he's not afraid to mix and take in the views of those with which he disagrees. So much good stuff in that book about how both fringes - right and left - want us to get emotional, quickly, about issues as soon as we get the first take on it from our preferred media outlet. I put my faith in no man, but if we had more like him in Congress we'd be in better shape than now. As many Seals are, he's driven self-promoter, but I'd rather have a self-promoting Seal than most of these self-promoting clowns.
RTR,
Tim
heads every election cycle.
