collateral = toilet paper.
Collateral? We don’t need no stinking collateral!
How can there be any collateral?
The Government is buying up 45 billion in Treasury Notes each month (using electronic scrip) and pumping another 40 billion in the stock market. This is the 85 Billion per month the government has been spending for two-three years now, maybe more.
The stock market is ecstatic because it’s 40 billion they get to use and count as activity (want,need,desire)and the government has ‘legitimized’ its debt by purchaser-backed T-bills - no matter that the customer IS the government.
One big scam. One month of it is equal to the 85 billion the Democrats’ sequester they keep blaming all our troubles on. I call a big BS.