tag:blogger.com,1999:blog-2761684730989137546.post1900268730569477905..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: The stupidity of this comment: "Bond market facing huge supply."mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-515513818607483532009-07-27T15:34:55.005-04:002009-07-27T15:34:55.005-04:00YES AND THE CHINESE CANNOT BE BLAMED FOR UNDERSTAN...YES AND THE CHINESE CANNOT BE BLAMED FOR UNDERSTANDING OUR MONETARY SYSTEM BETTER THAN OUR POLITICIANS AND PUBLICgoogleheimhttps://www.blogger.com/profile/14459089745473598235noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-30447024378030544662009-07-27T12:38:32.864-04:002009-07-27T12:38:32.864-04:00ARe you talking about redemptions? The Treasury re...ARe you talking about redemptions? The Treasury redeems vast amounts of debt on a daily basis. So far this fiscal year the Treasury has redeemed $5.9 trillion of securities.<br /><br />Some call this "rolling over" of debt. The point to remember is that all spendinng is done the same way: by crediting bank accounts. If someone wants to redeem their Treasury bond, the Treasury will credit the reserve account of that person's bank (and the bank will credit his checking account). He has the same wealth, just a different mix off assets. Before he had a debit in his checking account for the purchase of the Treasury, but he had a Treasury (asset). Now he has a credit in his checking account from the sale of the Treasury, but he no longer has the Treasury bond.<br /><br />Investors all over the world--including foreign governments--buy Treasury securities. They are basically a savings account of the U.S. Governnment. The important thing to remember is that the spending is done first and this leads to an increase in reserves in the global banking system. Those reserves or a portion of those reserves are then exchanged for Treasuries. That's how they are "paid for."<br /><br />Therfore, THE MONEY TO BUY TREASURIES AND TO PAY TAXES COMES FROM GOV'T SPENDING ITSELF.mike normanhttps://www.blogger.com/profile/03296006882513340747noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-82764442676416448452009-07-27T11:13:37.888-04:002009-07-27T11:13:37.888-04:00Please explain for the naive: It would appear that...Please explain for the naive: It would appear that the $7.4 trillion is money that the Treasury is taking in as a result of bond sales (public debt issuance). I don't see that this is money the Treasury uses to buy bonds. Aren't the bonds being purchased by investors and sovereigns? Thanks for the clarification.Pentagronhttps://www.blogger.com/profile/04291763653419917767noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-67134226886282756472009-07-27T10:51:33.463-04:002009-07-27T10:51:33.463-04:00EXACTLY
THE BANKS MUST BE CONTROLLING THE MEDIA A...EXACTLY<br /><br />THE BANKS MUST BE CONTROLLING THE MEDIA AGAIN AS THEY GET 0% ON FED CREDITED LOANS WHILE THEY TURN AROUND AND JACK RATES UP ON CREDIT CARDS.<br /><br />AND THIS IS THE REASON WHY WE NEVER BORROWED MONEY FROM THE CHINESE.<br /><br />INSTEAD WE LOANED AND MADE AVAILABLE TO THEM OUR MONETARY SYSTEM INSTRUMENTS AND OUR CONSUMER MARKETS.<br /><br />WE BASICALLY CREDITED THEM CREDITS AS THEY DELIVERED GOODS FROM THEIR CHEAP LABOR MARKET.<br /><br />WE DID NOT BORROW FROM THEM AS IF THEY WERE RICH FISH READY TO LOAN SHARK.googleheimhttps://www.blogger.com/profile/14459089745473598235noreply@blogger.com