Paul McCulley on Fed buying 85% of Treasury's net debt issuance in the past 7 weeks

We’ve had a merger of monetary and fiscal policy. We’ve broken down the church-and-state separation between the two.

~ Paul McCulley, former chief economist at PIMCO, Bloomberg interview, May 15, 2020

(Credit to Philip Grant, editor of Almost Daily Grant's, for finding this quote. Also, according to May 15, 2020 ADG: "According to estimates from Bloomberg Economics, the Fed will purchase up to $3.5 trillion in government bonds this year, covering the bulk of an estimated $3.7 trillion fiscal shortfall.")

Alan Greenspan on why US Treasury Bonds are still safe

This is not an issue of credit rating. The United States can pay any debt it has because we can always print money to do that. So, there is zero probability of default.

~ Alan Greenspan, "the Maestro" and former chairman, Federal Reserve, MSNBC's Meet the Press, August 7, 2011

Independent Senate Candidate Warren Mosler Bets $100M Federal Government Can Not Run Out Of Money

I am running for U.S. Senate to see my policies implemented to create the 20 million jobs we need. And to do this it must be understood that there is simply no such thing as the U.S. Federal government running out of money, nor is the Federal government operationally dependent on borrowing from China or anyone else. U.S. states, individuals, and companies can indeed become insolvent, but U.S. government checks will never bounce.

Yes, large Federal deficits that push the economy beyond the point of full employment can lead to inflation or currency devaluation, but not bankruptcy and not bounced checks. If lawmakers today understood this fact, they would not be looking to cut Social Security and we would not still be mired in this disastrous recession.

~Warren Mosler, Connecticut Independent candidate for US Senate, "Senate Candidate Bets Congress $100 Million That the U.S. Government Cannot Run out of Money", BusinessWire.com, October 23rd, 2010

Alan Skrainka on the European bailout of May 2010

One trillion dollars is a big number. This is enough to buy all of Greece's debt twice, with enough left over to buy all of Portugal's debt. It was meant to remove any potential for contagion. Problem solved.

~Alan Skrainka, Chief Market Strategist, Edward Jones, "They Said What? European Bailout", Barron's magazine, May 15th, 2010

Kevin Duffy on the European bailout of May 2010

If healthy economic systems require taxing the responsible and debasing the currency to bail out the profligate, the EU's rescue package should be a raging success.

~Kevin Duffy, principal, Bearing Asset Management, "They Said What? European Bailout", Barron's magazine, May 15th, 2010

Fred Hickey on Bernanke's claims that he is not monetizing the debt

I watch every week as tens of billions of dollars are created out of thin air by the Fed in order to purchase U.S. Treasuries and mortgage backed securities. While Bernanke claims that he's not monetizing our debt, it's like a kid sitting in front of an empty plate with chocolate frosting all over his face claiming that he didn't eat the cupcake.

~ Fred Hickey, The High-Tech Strategist, August 3, 2009