Can this be explained in simple terms? I don't understand why T-Bills, for example, are sold by the US Treasury when it's already over $30 trillion in debt. Given that a small slice of this debt comes from paying holders of T-Bills, and other instruments, money that they'll also have to borrow. So why don't they just stop selling them which would help lower the national debt?
Maybe it's because the Treasury earns a little more off of my cash. held for, say a 17 week period, than the amount they'll owe me at maturity? That would make sense. If that's the case, I'm curious to know what they do with my cash to make a profit off of it. Loan it to banks, etc? Is that basically it in a nut shell?
Maybe it's because the Treasury earns a little more off of my cash. held for, say a 17 week period, than the amount they'll owe me at maturity? That would make sense. If that's the case, I'm curious to know what they do with my cash to make a profit off of it. Loan it to banks, etc? Is that basically it in a nut shell?
Statistics: Posted by OldTucker — Sun Nov 17, 2024 7:55 pm — Replies 5 — Views 446