Hi
Some thoughts you not will find in any post and some thoughts which created questions to me:
What do you think about the following or what would be your answer?
If any goverment has any financial problems, the banks which control any government create so called: Goverment bonds.
You as a tax payer now can buy such goverment bonds and you have a guaranteed yield of lets say 5% per year.
Are you now a winner because you get this 5% or what consequences does it have to buy such bonds?
An other example: If you decide to invest in a live insurance, you may sign a contract for 30 years and in this contract you get the guarantee, that you at the end of those fixed time will get a fixed amount of money. (The whole contract is some kind of a credit agreement contract in advance from your side with the insurance company, as they give you the guarantee, that they will pay you this amount. So as every credit institute, they want yields from your side and if you not understand that, then cancel onces such a contract and you see how much money you will get back!)
As the live insurance not will take any risk and gave you the guarantee of that fixed amount, they will also buy goverment bonds in which they will have a guarantee, that they will get in retourn so and so much yield.
By the way: On that math is the whole game build up.
As the goverment not has enough money when its banks create government bonds for it, who is going to bring the money for the yield of this bonds.
Again: Are we winners when buing goverment bonds from our goverments or are we may the once which pay with our tax the yields the government guarantees to us or to our live insurance company?
DanPickUp
Some thoughts you not will find in any post and some thoughts which created questions to me:
What do you think about the following or what would be your answer?
If any goverment has any financial problems, the banks which control any government create so called: Goverment bonds.
You as a tax payer now can buy such goverment bonds and you have a guaranteed yield of lets say 5% per year.
Are you now a winner because you get this 5% or what consequences does it have to buy such bonds?
An other example: If you decide to invest in a live insurance, you may sign a contract for 30 years and in this contract you get the guarantee, that you at the end of those fixed time will get a fixed amount of money. (The whole contract is some kind of a credit agreement contract in advance from your side with the insurance company, as they give you the guarantee, that they will pay you this amount. So as every credit institute, they want yields from your side and if you not understand that, then cancel onces such a contract and you see how much money you will get back!)
As the live insurance not will take any risk and gave you the guarantee of that fixed amount, they will also buy goverment bonds in which they will have a guarantee, that they will get in retourn so and so much yield.
By the way: On that math is the whole game build up.
As the goverment not has enough money when its banks create government bonds for it, who is going to bring the money for the yield of this bonds.
Again: Are we winners when buing goverment bonds from our goverments or are we may the once which pay with our tax the yields the government guarantees to us or to our live insurance company?
DanPickUp
