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Thanks, Smiling Dave. That is much easier to understand than when it is called "buying debt." Appreciate it.
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Thanks for the reply. So it's like paying off the Visa with the Mastercard? In this context, Mastercard (or "B" in your example) has "bought" the debt from Visa (A)?
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I'm new to economic study, and one thing I am having trouble wrapping my brain around is the concept of "buying" debt (i.e. the Fed "buys" government debt). For some reason I am confused by the terminology. How does this work? Does the purchaser of debt then become the debtor? It sounds that way, but I know that can't be