Re: Re: government debt purchase

[Brad DeLong <delong@xxxxxxxxxxxxxxxxx>]

>  > In today's LA TIMES, there's a story about the US government's purchase of
> >  its bonds (as part of the "paying down" of its debt). Because it can't
> >  always do so (since sellers must be willing to sell and will often wait
> >  until the bonds mature), the government needs somewhere to "park" its
> >  dollars from the budget surplus until sellers are ready.
>
> Does anyone (Brad?) know how the government currently handles this?

So far it hasn't been a problem. There's $4 trillion of government
paper out there. So far someone has always been willing to sell at a
price the Treasury finds reasonable...


Brad DeLong