Re: Just don't matter to most here, but
One More Cast,<br /><br />The answer to your question is Treasury Bills, or T-Bills. Otherwise known as Government Bonds. If the Gov. needs to raise money via the debt route then it will issue a T-Bill, the everyday consumer like you and me can purchase a chunk of this T-Bill just like we can buy bonds or stocks from any other publicly traded company. Unlike stocks, your rate of return is more certain and guaranteed, especially with a T-Bill, vs any other financial instrument. The largest investors in the market, weather it is the bond market, stock market or whatever, are large corporations, overseas banks, etc. Joe Public consumes a very small portion.<br /><br />T-Bills are good for a retirement portfolio as they present a better return than your checking account and realtively low risk. I don't think the Gov has ever defaulted on a T-Bill.<br /><br />The Borrowing limit that was approved is basically the equivalent to getting the thumbs up from your bank to pull out another loan (if you wish) on top of what you have already borrowed.<br /><br />Incidentally, in the business world, a little debt is a good thing. Especially with today's interest rates. If you can borrow for 4% then turn around and earn 15% with that cash, then you just profited a net 11%. Most successful companies expect a dollar invested back into the business to give a return at least 10%+. The most expensive way for a business to raise money is through stock.
