What if they never do? If they hold their bonds long enough, they all mature at face value.
What if they never do? If they hold their bonds long enough, they all mature at face value.
That's the flip side of the "no-profits" coin. What's the quality of the bonds? The govt has bought so much crap, the actual value might be nowhere near the face value, let alone what this escalating inflation will do to the value after being held "long enough".
My problem is that these guys are playing "Whack-A-Mole" with the liability and some in the financial community breathe a sigh of relief when it pops up in someone else's hole, not that the liability is paid off.