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Central Banks Buy More Than 100% of US Government Debt

Saturday, October 10, 2009, 8:57 PM
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There was a short report put out by the Council on Foreign Relations (CFR) that really caught my eye.  It seems that their results confirm my own:  Central banks have been buying more than their fair share of US government debt.

It is safe to say that if it weren't for the massive interventions of central banks, the US fiscal situation would be entirely different.

How much different?  Well, according to the CFR calculations, central banks (called "official buyers") bought more than 100% of all US government debt offered in 2009, while "economic buyers" (defined as those who actually care about whether they make or lose money) were net sellers.

 

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