Teachers and Students > Debates
US government's business policy!
astarmathsandphysics:
The Americans dont buy those bonds, but the German/Swiss etc buy US bonds. Why is that?
Alpha:
Because the net is too small to fit the Lion. :D :P
Only rats can enter. ::)
elemis:
--- Quote from: astarmathsandphysics on December 06, 2010, 10:26:51 pm ---The Americans dont buy those bonds, but the German/Swiss etc buy US bonds. Why is that?
--- End quote ---
Like I said, America offers Treasury Bonds valued in Dollars in exchange for loans. Those bonds are nothing more than IOUs.
When it comes time to pay all America needs to do is print the money and give it to the Swiss/German lender.... but in doing so the actual monetary worth of Dollar bills will have fallen.
$tyli$h Executive:
--- Quote from: Kirin on December 12, 2010, 11:14:26 am ---Like I said, America offers Treasury Bonds valued in Dollars in exchange for loans. Those bonds are nothing more than IOUs.
When it comes time to pay all America needs to do is print the money and give it to the Swiss/German lender.... but in doing so the actual monetary worth of Dollar bills will have fallen.
--- End quote ---
I'm not sure if the Fed resorts to the printing presses each time, but doing that repeatedly could seriously devalue the dollar and affect US businesses in the long term.
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