Re:United States loses AAA credit rating from S&P
by noagenda on Friday August 05, 2011 @11:45PM
(#2852918)
US government doesnt sell bonds to fund operations, it is never revenue constrained (because the US dollar is a non-commodity backed, floating exchange rate, fiat currency). It sells bonds to remove dollars from the system.
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Re:United States loses AAA credit rating from S&P
by jpdoctor on Saturday August 06, 2011 @03:04PM
(#2854633)
> US government doesnt sell bonds to fund operations
Yes it does.
> It sells bonds to remove dollars from the system.
No. The Fed is in charge of the money supply, and when they sell bonds, dollars are removed from the system.
The US Govt selling bonds actually increases various measures of the money supply.