duh...obviously they are getting paid interest on that debt, right?
"Interest? What is it, 4% annually?"
its guarnateed interest....
that's more than companies who have to make money...its guaranteed that the government will steal this money from tax payers....
nice...from an investors point of view
limitgov: its guarnateed interest.... that's more than companies who have to make money...its guaranteed that the government will steal this money from tax payers.... nice...from an investors point of view
That is certainly true, and yet the real interest rate on these bonds, taking into account inflation, is negative. Hence it would make far more economic sense for the Chinese to just spend that money.
But of course, if you’re going to peg, you need reserves, and rather than keeping them in dollars that get you nothing at all, at least keep them in bonds. Perhaps this is indeed the trick.
It makes sense for the Chinese government officials but not for the Chinese people
All kinds of rumors that China's Sovereign Wealth Fun (CIC) is making a play at Liverpool Football Club, which sounds quite strange. As a fan of the club I am not sure what to think.