Does Tsy backstop the Fed?

In previous thread, JKH has this interesting quote from Paul Krugman (who, I still maintain, is not evil and is not the devil). “There is not, I’m told, any formal Treasury backing for the Fed; there were informal assurances early in the crisis, and everyone takes it for granted that any losses that exceed theRead More

Is it cruel to wake up the deluded?

In the Mass Psychology thread, we were discussing a floating payroll tax and I suggested it be called a full employment tax system since the payroll taxes would only be paid at their standard rates at full employment; otherwise the further north of FE, the more FICA rates would be automatically reduced. Tom Hickey madeRead More