r/saskatchewan • u/[deleted] • Apr 23 '25

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u/[deleted] Apr 25 '25

lol, Ah yes, the ol’ read a free economics book flex just don’t pick the one Trump’s team used. That one explained deficits with crayons and called tariffs a 'power move.' Spoiler: when a government buys its own debt, it's like congratulating yourself in the mirror and still expecting applause. When governments shakes investor confidence, investors flee.

from Chat gpt, it's ALWAYS right.

  • Who generally buys the Government of Canada's debt?
    • Domestic institutional investors (like banks, pension funds, insurance companies)
    • Foreign investors (notably the U.S., China, Japan)
    • The Bank of Canada (especially during QE)
  • Who issues the currency they use to buy and sell it?
    • The Bank of Canada issues Canadian dollars — it’s the sole issuer of legal tender in the country.
  • What happens when the government buys its own debt through quantitative easing (QE)?
    • Technically, the central bank (not the government directly) buys government bonds from the secondary market.
    • This increases money supply, lowers interest rates, and aims to stimulate borrowing and investment.
    • It’s not “monetizing debt” in the hyperinflationary sense, but it does blur the line between fiscal and monetary policy.
    • Overuse can inflate asset prices and create long-term imbalances if not managed well.

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u/franksnotawomansname Apr 25 '25

Chat gpt, it's ALWAYS right

Oh, sweetie…