Post #8543 by Munger_Disciple on the Berkshire Hathaway board

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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A) ❤

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Every month, the government SELLS about $180B of new bonds (new meaning over and above all the refunding of old bonds), does this mean that you believe the only way all those bonds are being bought ($1.3 trillion so far in 2024) is if people sell stock to raise the money to buy those bonds?

Those bonds are sold to finance deficit spending by the govt. So Govt spends first which creates bank reserves in the private sector. Then the treasury issues bonds. The excess reserves in the private sector are then removed and replaced with interest paying govt bonds. This has nothing to do with stock market transactions.

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