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To: April Lexington
if the Treasury offers bonds and nobody buys them at the”target” interest rate

The "target" interest rate is whatever it takes to sell them.

who will buy those bonds from the Fed?

The Fed can hold the bonds until maturity.

65 posted on 02/07/2011 7:33:41 AM PST by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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To: Toddsterpatriot
who will buy those bonds from the Fed? The Fed can hold the bonds until maturity.

But then, on that day, the Treasury will have to redeem the bonds at face value. Whereupon they will have to either get some money from the tax payers or borrow some money from folks interested in buying new bonds or sell new bonds to the Fed if all of the other bond buyers are demanding an interest rate that is outside of where the Treasury needs it to be.

76 posted on 02/07/2011 10:16:14 PM PST by April Lexington (Study the Constitution so you know what they are taking away!)
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