Deficit Owls | What If Nobody Bought US Treasury Bonds? @deficitowls5296 | Uploaded October 2016 | Updated October 2024, 9 hours ago.
Professor L. Randall Wray answering the question of what would happen if nobody bought US treasury bonds? Would we go bankrupt?! The answer is no. Under current law, special primary dealer banks must buy new issues of treasury bonds, and then they can either keep them, sell them to the public, or sell them to the Federal Reserve. But even if we didn't have our current institutional structure, a currency-issuing government like the United States can always sell its bonds to the central bank. (To understand why this is not inflationary, see here: youtube.com/watch?v=CO6GS13rEuE&index=7&list=PLZJAgo9FgHWaMs-WzbMAUw91u5pjGaR59)
Watch the whole video here: youtube.com/watch?v=0zEbo8PIPSc
Follow Deficit Owls on Facebook and Twitter:
facebook.com/DeficitOwls
twitter.com/DeficitOwls
Professor L. Randall Wray answering the question of what would happen if nobody bought US treasury bonds? Would we go bankrupt?! The answer is no. Under current law, special primary dealer banks must buy new issues of treasury bonds, and then they can either keep them, sell them to the public, or sell them to the Federal Reserve. But even if we didn't have our current institutional structure, a currency-issuing government like the United States can always sell its bonds to the central bank. (To understand why this is not inflationary, see here: youtube.com/watch?v=CO6GS13rEuE&index=7&list=PLZJAgo9FgHWaMs-WzbMAUw91u5pjGaR59)
Watch the whole video here: youtube.com/watch?v=0zEbo8PIPSc
Follow Deficit Owls on Facebook and Twitter:
facebook.com/DeficitOwls
twitter.com/DeficitOwls