right: cash is more liquid (by definition). But T-bills are as safe as cash. Any higher return entails risk.
But doesn't this distract us from your initial question, Jayson? On Tue, Jul 21, 2009 at 2:22 PM, Jayson Funke<[email protected]> wrote: > But cash, as in the case of sovereign wealth funds, can be invested in more > lucrative investments than t-bills. So cash is not always bad to hold, > especially when it is the reserve currency - technically the "highest > quality" money. > > > On 7/21/09 5:06 PM, "Jim Devine" <[email protected]> wrote: > >> I don't know the law, but it's clearly in the creditors' interest to >> hold T-bills rather than cash, since T-bills pay interest. >> >> On Tue, Jul 21, 2009 at 2:03 PM, Jayson Funke<[email protected]> wrote: >>> Hello Penners, >>> >>> As I understand it, the US requires foreign countries that hold US dollars >>> as reserve currency to do so by purchasing and holding US T-bills (thus >>> contributing to the US's ability to maintain its current account deficit). I >>> recall reading somewhere that as early as the 1950s Congress wrote this into >>> law, that US foreign reserve dollars must be held in the the form of >>> T-bills. >>> >>> If this is correct, is the US unique in this regard, or do other currencies >>> have similar requirements as to how their currencies are held by foreign >>> states? >>> >>> Any light you could shine my way is appreciated. >>> >>> Jayson >>> >>> Jayson J Funke (ABD) >>> Graduate School of Geography >>> Clark University >>> 950 Main Street >>> Worcester, MA 01603 >>> >>> >>> _______________________________________________ >>> pen-l mailing list >>> [email protected] >>> https://lists.csuchico.edu/mailman/listinfo/pen-l >>> >> >> > > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Jim Devine / "And when California slides into the ocean, as the mystics and statistics say it will, I predict this hotel will be standing until I've paid my bill." -- Warren Zevon [paraphrased]. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
