Thursday, February 24, 2011

We know where Congress gets its paper


The red line is Congress borrowing the blue is Ben lending. So if Ben is lending, and Congress is borrowing, then Congress pays this back, right?   Ben can't just forgive this debt because he wants the Treasuries to be tradable, and he has already traded much of them. So the Treasury bonds have to collect a debt service fees to be tradable.  Hence, Obama has to schedule $300 billion.year  in debt service within five years.  Any ideas?

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