this post was submitted on 05 Feb 2024
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Finance

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Why can't the government buy its own debts and cancel them? (beehaw.org)
submitted 9 months ago by TheBaldness@beehaw.org to c/finance@beehaw.org
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Or does the government already do this? If so, can anyone explain like I'm five?

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[–] furrowsofar@beehaw.org 1 points 9 months ago* (last edited 9 months ago)

It has to have the money to do that and it needs to run a surplus to do that. Meaning reduce spending increase taxes. Political forces are to reduce taxes and increase spending. Your are asking politicians to not play politics and people to support that. What are the chances.

Also people would have to be willing to sell them at a price that seemed reasonable. Most government bonds are not callable meaning redemption cannot be forced.