Where do you get $700 billion?
Discussion
If the US government wants $700 billion, where does it get it? I assume there are 2 options.
1) Borrow it from another government, but why would they want any more? They have billions of the things already and the yields aren't exactly great.
2) Print them. Well then you’re going to get a lot of inflation and the housing market might not appreciate a rate hike at the moment.
1) Borrow it from another government, but why would they want any more? They have billions of the things already and the yields aren't exactly great.
2) Print them. Well then you’re going to get a lot of inflation and the housing market might not appreciate a rate hike at the moment.
Fittster said:
If the US government wants $700 billion, where does it get it? I assume there are 2 options.
1) Borrow it from another government, but why would they want any more? They have billions of the things already and the yields aren't exactly great.
2) Print them. Well then you’re going to get a lot of inflation and the housing market might not appreciate a rate hike at the moment.
I heard they are selling Saddam's gold.1) Borrow it from another government, but why would they want any more? They have billions of the things already and the yields aren't exactly great.
2) Print them. Well then you’re going to get a lot of inflation and the housing market might not appreciate a rate hike at the moment.
Gold reserve .... National debt ... tax
Since the abolition of the Gold Standard, all money has no value..its value is "honoured" by the banks. Gold is the only true currency ... the federal reserve has massive stockpiles ... they just Move some around
Since the abolition of the Gold Standard, all money has no value..its value is "honoured" by the banks. Gold is the only true currency ... the federal reserve has massive stockpiles ... they just Move some around
Edited by JVaughan on Thursday 2nd October 15:27
mgtony said:
Is it just me, or is anyone else hearing different news programmes/reports saying $700 billion and others saying $700 million?
Its just you - $700 million would have no impact whatsoever. Incidentally, $700 billion will probably have no effect either, but I guess its 1000 times more likely...Windsorphil said:
Let me think......maybe I'll wait 18 months and see how things go
.LoFiHamster said:
They issue Treasury Bonds - basically, long-term, interest-paying IOUs.
They're pretty sound investments (as the US Govt is fairly unlikely to default), and they're typically bought (at the mo) by Foreign Sovereign-Wealth funds (think Arab states).
I still don't get it - sorry if I'm being thick....They're pretty sound investments (as the US Govt is fairly unlikely to default), and they're typically bought (at the mo) by Foreign Sovereign-Wealth funds (think Arab states).
If they issue bonds that people buy, how do they get paid back?
And does that mean that the UK could be bought up by some rich Arab state?
james_tigerwoods said:
LoFiHamster said:
They issue Treasury Bonds - basically, long-term, interest-paying IOUs.
They're pretty sound investments (as the US Govt is fairly unlikely to default), and they're typically bought (at the mo) by Foreign Sovereign-Wealth funds (think Arab states).
I still don't get it - sorry if I'm being thick....They're pretty sound investments (as the US Govt is fairly unlikely to default), and they're typically bought (at the mo) by Foreign Sovereign-Wealth funds (think Arab states).
If they issue bonds that people buy, how do they get paid back?
And does that mean that the UK could be bought up by some rich Arab state?
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