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E ND | exactly. If you buy a bond, say for 10k, you take 10k from your cash, a current asset, your liquidity, and then account for the bond holding as an intermediate or long term asset. If I sell you the bond, I am doing it because I need the money, and I am borrowing it from you and paying you interest. I take your cash, account for it as cash, a current asset, and then show the DEBT I owe you as a liability, intermediate or long term. It is a liability because it is debt. lets not get lost in the accounting here, some people seem to. remember, I took your cash! and I am also willing to pay you interest because I am borrowing it from you. I would ask you this, if the govt is not in debt, then could you explain to me why it would pay so much in interest? and it does so out of revenues from the irs. | |
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Growth of money supply vs population size
