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In this scenario, the government will likely lose money because the existing assets will not cover the loans made out to depositors. For example, if the govern
by senttoschool 4y ago
In this scenario, the government will likely lose money because the existing assets will not cover the loans made out to depositors.
For example, if the government buys the 10 year bonds yielding 1-2%, they will lose money based purely on future value.