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To: Buckeye McFrog

What if the gov held a T-bill auction, and nobody came?


25 posted on 12/07/2012 11:20:11 AM PST by 45Auto (Big holes are (almost) always better.)
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To: 45Auto
What if the gov held a T-bill auction, and nobody came?

The "Primary Dealers" always come.

That's one of the conditions of being a "Primary Dealer".

The problem will arise when the rest of the world stops pretending the Benbernank isn't then buying the T-bills from the Primary Dealers with freshly-printed dollars and starts pricing oil in something other than US dollars. That means that to buy oil we have to buy some other currency with dollars, and that's when the music stops.

27 posted on 12/08/2012 4:18:53 AM PST by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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