tk939
August 22nd, 2007, 11:45 AM
bonds are paid by the issuer. I suppose, that the US bonds are issued by the government, what for would the Central bank need the money from the bills.
You cannot pay out the bond earlier or later, the same way you cannot exercise an option before the agreed upon date.
That´s why it is important, that the central bank is independent from the government so that it doesn´t just print more money anytime the government wants.
There were recessions and bank runs when the dollar was fixed to gold also. At least with the fiat systgem you can control you currency somewhat in relation to your economy, with fixing to comodity you are controlled by the world...
You cannot pay out the bond earlier or later, the same way you cannot exercise an option before the agreed upon date.
That´s why it is important, that the central bank is independent from the government so that it doesn´t just print more money anytime the government wants.
There were recessions and bank runs when the dollar was fixed to gold also. At least with the fiat systgem you can control you currency somewhat in relation to your economy, with fixing to comodity you are controlled by the world...