Wednesday, February 4, 2009

Seven-Year Note Returns as Treasury Plans Record $67 Billion Debt Offering



Treasury should be eliminating security sales altogether and using other means to manage reserves, not increasing the range of its offerings. Total elimination of Treasury sales would finally dispell the harmful but erroneous notion that the government needs to borrow to spend.

Read article here.

2 comments:

STF said...

Did you see this part of the article . . . recognition of the role of the Tsy in Fed ops, but only recognizes in in the current special case.

"Discussions are under way with the Federal Reserve on the Supplementary Financing Program, in which the Treasury borrows on behalf of the Fed, Ramanathan said. When the Treasury sells bills at the Fed’s behest, it drains reserves from the banking system and makes the central bank’s job of controlling interest rates easier. "

Your suggestion works most of the time regarding the word verification. Thanks.

Scott Fullwiler

Mike Norman said...

Scott,

Thanks. I didn't see that. It'll mostly be glossed over I think, because Ramanthan keeps characterizing the whole thing in terms of "funding." That's what the media picks up on.