0815user said:
if you have a savings account or just anything that generates income based on government bonds you cause government debt somewhere on the world. there is a reason why interest rates a down globally because central banks are trying to solve the government debt problem by getting people out of so called save money investment solutions that cause the debt nearly everyone is complaining about. |
...uh...what?
The reason interest rates are low is because Western governments are lowering them with the intention of encouraging investments. Basic monetary policy; lower interest rates to make taking out loans seem like a preferable option. The hope is that potential entrepreneurs will use the money to start businesses, increasing the amount of economic activity and tax revenue.
As for everything else, the government would simply need to raise the money necessary to buy back bonds and then refrain from selling them as much in the future.
