As a result, municipal bonds, which traditionally yield 75to80percentent of what equivalent Treasuries pay out, are close to Treasury yields on a before-tax basis.
But other European countries say their treasuries lose out, as corporations funnel profits through Irish registered companies that are not resident for tax anywhere.
Setting up a potential showdown with the State Assembly over the budget, a crucial Senate committee approved three bills yesterday that would change the flow of money in and out of New Jersey's treasury, giving out $400 million in rebates for property taxes while taking in $305 million by expanding the sales tax and eliminating certain tax breaks.
Mr. Corzine and the state treasury spelled out in the bond prospectus how they were going to find $1.2 billion by June 30, and government officials, who spoke anonymously because they did not want to be assailed by those who could be upset by the cuts, offered some amplification.
Hedging risky assets with Treasurys turned out to be the trade from hell.
A young accountant named Sergei Magnitsky uncovered an embezzlement scheme in which tax officials and police officers swindled the Russian treasury out of $230 million in taxes.
In Pasquantino v. United States, the Supreme Court upheld a conviction for defrauding the Canadian treasury out of tax revenue from smuggled cigarettes.
Bernanke is likely to buy tranches of Treasuries quarterly, spread out over a year.
With no meaningful yield on Treasuries, even going out 20 to 30 years in maturities, these newsworthy stats sooner or later reverse.
On October 5th it emerged that Venezuela, perhaps for political reasons, had apparently transferred as much as $20 billion—most of its reserves out of Treasuries and out of America.Indirectly, central banks' diversification out of dollars may also be boosting private-sector demand for dollar assets.
