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But the government can just start buying its bonds on the free market if it has extra cash before its debts mature.
by baltcode 15y ago
But the government can just start buying its bonds on the free market if it has extra cash before its debts mature.
- Confusion 15y agoIt would be interesting to see a country like the US buy so many bonds of another country that it effectively owns the other country in the end. A nice capitalist way to expand your country.
- paulkoer 15y agoKind of like China bought the US? Has this had any noticable effect for you guys?
- lukesandberg 15y agoHow so? China owns ~10% of US treasury bonds, which makes them the largest single holder of Treasury Bonds. This does not mean they bought anything other than a promise for repayment at a stated rate.
- lukesandberg 15y agoGovernment Bonds are not like equity. You could own every single Treasury Bond and still not have any claim of ownership. Obviously governments still try to appease the bond markets but that is not due to obligation, it is self interest.