is functionally any different then the Fed providing settlement balances to settle any type of transaction. So this may be just "business as usual" for the Fed and doesnt really require any unique documentation to describe a repo done to specifically settle a Treasury auction.... Resp, Conversations in MMT seem circular and end at spending resulting in inflation when more or less constantly we already have inflation. yes that's b/c the issue with spending is inflation. And although much has gone on with spending cuts and talk of the debt, etc. the government is still spending so we haven't seen what exactly would happen to inflation with a balanced budget yet plus there are other factors with inflation like commodity prices. I'd like to respond to your questions about the bookkeeping and accounting but I don't seem to be following the relevance of TT&L accounts and bond holders as you keep on stating them. I may be misunderstanding you or missing something, but I am failing to see the material relevance to your question. I'd like to understand better if at all possible. Thanks! Frank There is nothing particularly abstract about the book keeping just because it is on a computer. The bank of England has been using reserve balances since 1878. Apparently MMT is based on bookkeeping and operational realities in a system constrained voluntarily by law. And in the context of that i asked a simple question which should have a simple answer. Is your answer created by