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I thought when when the Federal Government wants money, it sells Bonds to the highest bidder(s) in an open market. The FR can bid for the bonds like everyone else, I suppose. What I do know is that when *I* buy a US Bond, *I* get the interest, not the Federal Reserve. I don't understand what is being said here. But I am interested.
Scott Hoffman
That is the way we got
our 30 years bond for which you and I pay interest (the national debt).
For example if the government needs to borrow one million dollars they
ask the FR for the money. The FR in turn asks the government for one
million dollars in bonds (interest bearing of course). To the FR it's
only an entry in a ledger, no money was really created just the ledger
entry. Something for nothing. The U.S. government now has to repay that
$1 million dollars plus the interest back to the FR. Now just who do you
think gets that interest?
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