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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?


To: Peter Dierks who wrote (2677)11/2/2007 5:50:41 PM
From: TimF  Read Replies (1) | Respond to of 42652
 
My understanding is that once their was any "reserves", they where always "invested" in federal government bonds. (In other words the government lent the money to itself. I can't see how you have that situation without having the money spent "as it comes in to the system", except perhaps by having government surpluses. Then the the money would go to pay back normal treasury bonds, until they where all paid off, but it still wouldn't really be in a reserve. The only real way to have a reserve is to put the money in something other than government IOUs to itself.