OohPooPahDoo
Gold Member
The idea was "not to spend the money" - in other words the government didn't put the money in interest bearing anythings - but they spent the money. Rather than a Ponzi Scheme, more like the FED Govt embezzled the money - perhaps with the intention of paying it back and perhaps not.
Their "intention of paying it back" is the same as their "intention of paying it back" for all other Treasury obligations. Considering the interest rate on a 30 year Treasury is running between 3% and 4% these days, I'd say the market believes the "intention of paying it back" is pretty damn reliable. Seriously can you name any corporations able to borrow money at such low rates from bond investors?