Quote:
Originally Posted by Vexx
They dress it up but its just a loan.
|
Clarification: not "just" loans. They're also the primary means by which the US federal reserve control the money supply in the market. Want more money all around they "sell" cheap want less they buy them back up.
My econ teacher once told us that there used be seminars during the Clinton era of what to do (zomg!) if the US government clears all its debts and there are no more bonds transactions for the Fed to manipulate the money supply on. Needless to say, their optimism and their concerns alike are thoroughly misplaced.
