On Nov 14, 2013, at 12:48 PM, Jonathan Nitzan wrote:
Treasury Ownership Marks Wealth Divide by Gillian Tett.. ...To the wealthy elites in the US who hold government bonds, it seems self-evident that the government needs to preserve the sanctity and value of Treasuries...
Those who are rentiers (plus smallholders and public agencies) rely on the income from interest on those bonds, which is paid regardless of price fluctuations on the marketplace, plus the restoration of capital at maturity in the relatively distant future. These are absolutely certain to be paid. And as far as the really rich are concerned, the "sanctity" of the bonds (the certainty of coupon and principal payment) is just as certain. What is inconstant is the "value" (market price) of those securities, but the more that fluctuates the more convenient for speculative capital, while bonds in durable ownership provide the collateral for the bank credit that is the real tool through which they exercise their market power. The situation is not, of course, the same in those countries that have stupidly surrendered their monetary sovereignty to a Bundesbank. As that pathetic social-democrat Hollande is being told by an outraged French people.
Shane Mage "Thunderbolt steers all things." Herakleitos of Ephesos, fr. 64
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