On St. Patrick’s Day, individuals of all nationwide origins increase a glass and declare, “In the present day we’re all a bit Irish!” This can be more true than we know. Numerous members of that political get together that has spent so much time preaching doom and gloom, partly to persuade our older residents to take cuts in their Social Safety and Medicare benefits, have been pretty convincing to a lot of people who have no idea any higher, and who have trusted the mistaken folks to tell them the truth.
I do know this appears like borrowing from Peter to pay Paul, as a result of it is. However it works as a result of banks all the time will be capable of lend cash to the Treasury, because once they lend (in our fiat money system) they create new money out of skinny air for the loan.
Inthedoghouse, dineane, LdsNana-AskMormon – god these names get sophisticated – and to all of you who’ve provided their support to me right here, thanks very much, you’ve got given an incurable author a brand new lease of life, aqnd I’ll certainly be contemplating extra hubs in future.
(2) As an alternative of utilizing the securities to borrow cash for funding government operations, the securities will be bought to private and international buyers who have dollars they wish to park in a protected place and earn a little curiosity on it. These are analogous to bank CD’s which correspond to time deposits given the financial institution to earn interest.
Details of the government’s involvement in, and approval of, GM’s bankruptcy plan, (formulated by Treasury Secretary Geithner, the Auto Employee’s Unions, (UAW), and technically, GM’s administration), that were submitted to the Bankruptcy Court docket for approval, have been the figuring out factors deciding whether GM can be pressured to liquidate, or allowed to file under Chapter 11 terms and emerge from the filings as a new company – to proceed enterprise.