Also,
excess dollar reserves often produce excess credit, if the central bank allows the money supply to grow from the dollar reserves, which can lead to credit - induced inflation.
This will give you a clear understanding of how much money you NEED, and when subtracted from your household income you will have
excess dollars for saving or recreation spending.
So, they
take excess dollar liquidity and buy US bonds, forestalling the problem, because bonds will pay them more dollars in the future.
Maybe that can help explain why Treasuries are selling off on the long end — aside from excess supply due to the humongous deficit, there is less need to
recycle excess dollars by buying Treasuries.
If your net income on line 236 of your 2015 income tax return exceeds $ 72,809, your OAS pension will be reduced by 15 cents on
every excess dollar for the July 2016 through June 2017 payment period.
The annual limits are low ($ 5,000, plus any amount carried over from previous years), and
every excess dollar is taxed at 1 % per month.