Now, just to put that number into context, (the US has) $100 trillion of obligations. How much does the government take in in tax revenues? A little less than $3 trillion each year. So, if we take in $2.8 trillion, and we owe $100 trillion, we’ve got a problem. We owe something on the order of 35 years worth of taxes. And so we are going to default on a lot of these obligations.”
Arnott added: “We don’t know when inflation will strike. We do know that massive money printing operations historically lead to inflation. The purchases are sterilized in the sense that the bonds are purchased and then remain on the books of the government until they mature. But that doesn’t prevent it from triggering inflation.
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