Could the us treasury market be compared kind of to a world bank for other countries to put their money in ?
How similar and how not similar?also could the us stock market be kind of like the investment department of that bank?
Answer
I suppose that one might use that simile. the similarity is not too accurate though. the purpose of the u s treasury is to borrow money. the purpose of the world bank is to lend money and give money to developing countries (poor countries more specifically). as long as china, japan, and the persian gulf countries are willing to lend their money to the u s treasury, the u s government will not have to resort to the world bank for money. there may come a time in the not too distant future when the u s may no longer be able to peddle their paper to other countries. but that will not happen so long as china, japan, et al wish to peddle their stuff to the u s.
