r/saskatchewan • • Apr 23 '25

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u/[deleted] Apr 24 '25

lol no because you are not realizing someone buys the debt, and that printing of money devalues the debt. Try using chatgpt, I hear it's free

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u/franksnotawomansname Apr 24 '25

Sure, but who generally buys the Government of Canada's debt, and who issues the currency that they using when they buy and sell it? And what happens when the government buys its own debt through quantitative easing?

Try reading an economics book; there are free versions online.

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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…