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To: Randy Ellingson who wrote (42593)2/25/1999 4:15:00 PM
From: HG  Respond to of 164684
 
You're asking the wrong person. I took Microeconomics in school..macroeconomics I understand....just can't speak it...



To: Randy Ellingson who wrote (42593)2/25/1999 4:18:00 PM
From: Tom Kearney  Read Replies (2) | Respond to of 164684
 
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.

Regards,
TK



To: Randy Ellingson who wrote (42593)2/25/1999 4:21:00 PM
From: Sarmad Y. Hermiz  Read Replies (1) | Respond to of 164684
 
Randy,

Even though there is a surplus, the treasury is not retiring debt. The are putting the surplus into the Soc Sec Fund. So the total National Debt is not reduced. The part owed to the public (and foreigners is reduced). So they are putting long bonds into soc sec, and selling short duration to public