, 4 tweets, 2 min read
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The entire premise of this piece is nonsense. The problem isn't "budget deficits" , or "debt issuance" , the problem os volatility in the Treasury's reserve account at the Federal Reserve. They used to stabilize this balance with Treasury Tax and Loan accounts, they stopped.
It's this technical feature causing problems. In fact, if they operated this way and ran budget surpluses it would be worse. They would drain more settlement balances that way. It is shocking to have journalism on the Fed this poor after all these years.
@mucha_carlos clearly the Fed needs help, platinum coin to the rescue
I probably was too aggressive here but I'm really concerned about this narrative- which I believe to be false- that deficit spending is at the center of the repo issues. I think we got somewhere productive though.

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