• JustMy2c@lemm.ee
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    11 months ago

    Sure granny, go believe them,I’m sure those 2 trillion arnt in some loss leading 1% government bonds

    • jmdatcs@lemmy.tf
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      11 months ago

      Have you not been paying attention to what the Fed has been doing? Pardon my language but shoving cash up my asshole earns more than 1% these days.

      In 2022, before most of the rate hikes, the trust fund earned $66.4 billion. This year’s high, and hopefully very temporary, interest rates aside, it’ll usually be around 2.5-3%.

      I’m not sure what you think loss leading means or why you’re using it here, but governments storing reserve money earmarked for a specific purpose in their own bonds isn’t unusual or a bad thing. Should they stuff it under a mattress earning 0%? Should they risk it in the markets? Unsecured domestic bonds? Foreign bonds?

      • JustMy2c@lemm.ee
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        11 months ago

        Sorry, I must admit I’m not from the us and I may have been more talking/afraid for my local governments funds… Thanks for the great explanation tho!