I'm no expert, but they sell these bonds to private investors, institutions, insurance
companies, banks, etc, at an auction. Even though there is a surplus, cash flow
requirements generate these sales. Old bond issues expire, and must be rolled over. Also,
the treasuary gets it's money in spikes. It runs a deficit many months, even now.
Tom,
We are into an area that I do not believe I know a lot about. I do believe the money flow is a problem of sorts this time of year. The IRS is mailing out tax refunds and that will occur until April 15th. On the other hand, those that owe taxes, will wait until April 15th to pay. |
