Can the Government Raise the Money?

Germany unable to raise 6 Billion Euros. Meanwhile, China says they have a reduced "appetite" for US debt. Hmmmm. And the US is going to need large amounts of money to pay for the stimulus package, AND the rollover of some of that short-term debt we've been issuing recently. Can the government raise the money? An interesting question. Maybe we need higher rates to attract the money. IT

Edited by IndexTrader, 08 January 2009 - 09:21 AM.

Federal Reserve already said they will buy MBS and treasury as needed. This will be the last trick. Only side effect right now is Dollar may crash. So if Ben prints the money and Dollar does not crash, then USA is saved for now. Obama needs to do some serious fat cutting in the federal government and military spending.

IT: yes, of course. the government IS the money. don't let the foolishness you hear influence you. the gubmint can issue an unlimited amount of treasuries! we are in a fiat currency, fractional reserve banking/monetary system. by law, $ may be used for payments here and the FED issues the $'s. if bids are not there, the FED can simply buy EVERY SINGLE ONE and put them on its balance sheet. okay, that may hurt the value of the $ relative to other currencies, but that would mean our exports are cheaper and we would sell more. and since others would be in the same shape, it may not hurt the international value of the $ at all!

Edited by humble1, 08 January 2009 - 10:24 AM.

p.s. OR maybe we can ask "mush" sh*tlock at his next "interview". LOLROTF!

IT:

yes, of course. the government IS the money. don't let the foolishness you hear influence you. the gubmint can issue an unlimited amount of treasuries! we are in a fiat currency, fractional reserve banking/monetary system. by law, $ may be used for payments here and the FED issues the $'s.

if bids are not there, the FED can simply buy EVERY SINGLE ONE and put them on its balance sheet. okay, that may hurt the value of the $ relative to other currencies, but that would mean our exports are cheaper and we would sell more. and since others would be in the same shape, it may not hurt the international value of the $ at all!

The FED makes Madoff looks like nothing...