Harsha Aggarwal
11 years 7 months ago
economy strengthens, how will the Gov't reduce its debt to the Fed, which is apparently not a Gov't branch but now indirectly become a 4th branch? If the Fed raises rates, what will the Gov't or the market fund such treasury purchases with? And how long till it can pay down all that made up debt with tax funds from the provisions of real goods and services? Perhaps such a situation isn't really much to worry about but if India hit a recession tomorrow forcing Governor Rajan to lower rates....
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