Why do bonds have such a huge effect on the overall economy?
I had this posted on ELi5 but it was removed because it’s linked to a current event. But…I’d still like to learn about this topic. Maybe someone can explain?
I’m reading the news about the deficit and trying to understand the language around bonds (in the US) and the overall effect they have on the deficit etc. What’s the story here? People cashing in bonds? Something else? I keep reading text like, “doubling buybacks” and “the deficit threatens the bond market”.