Blog Entry Updated April 17th 2008: From CBS new April 1, 2008 (Videos, Photos) -
"CBS News entered the auction room of the Treasury Department's Bureau of Public Debt -- the first time a TV camera has ever been allowed inside. "It is where the U.S. government raises the money it needs to pay its bills. In other words, it is the world's biggest borrower flashing its credit cards.
"There is real money at stake," Ryan said. "Today we're auctioning off $13 billion of 10-year Treasury notes." Treasury notes are basically IOUs that the government pays back with interest. Without that money, and a few of these auctions every week, the government would shut down. Debt is now this nation's lifeblood.
Who's buying the debt? Pension funds, mutual funds, individuals, institutions and foreign governments compete to buy the U.S. treasuries by offering the cheapest interest rate.
See also: The Treasury Auction Process - Detailed , Abstract at SSRN- From The Social Science Research Network
"CBS News entered the auction room of the Treasury Department's Bureau of Public Debt -- the first time a TV camera has ever been allowed inside. "It is where the U.S. government raises the money it needs to pay its bills. In other words, it is the world's biggest borrower flashing its credit cards.
"There is real money at stake," Ryan said. "Today we're auctioning off $13 billion of 10-year Treasury notes." Treasury notes are basically IOUs that the government pays back with interest. Without that money, and a few of these auctions every week, the government would shut down. Debt is now this nation's lifeblood.
Who's buying the debt? Pension funds, mutual funds, individuals, institutions and foreign governments compete to buy the U.S. treasuries by offering the cheapest interest rate.
See also: The Treasury Auction Process - Detailed , Abstract at SSRN- From The Social Science Research Network
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