View Single Post
Old 08-01-2009, 01:55 PM   #1072 (permalink)
Butterfly
Suspended Member
 
Butterfly's Avatar
 
Join Date: Mar 2006
Posts: 16,926
Butterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand ExpatButterfly Thailand Expat
^ again, you don't understand. Government securities are issued all the time, they retire some, and replace some. Actually government borrowing is deferred in accounting practice, it's not a cash economy where you raised billions overnight. Banks have been injected with cash by the Central bank, they need to keep ratios stable, the capital is invested, usually in government securities. This is ever more true these days as they are afraid of lending. Instead they run to buy Treasury securities, too much demand for them which has even the US short term notes turn into a negative yield.
Butterfly is offline   Reply With Quote
 
Page generated in 0.23148 seconds with 16 queries