Is the Government's Fiscal Policy?

The idea that the government a, the government pays for its expenses by borrowing money. If there's an over supply of bonds, the bond price goes down and interest rates go up. We don't want high interest rates to offset that effect. The central bank itself buys the bonds from the government,. so it increases demand for the bonds, and it helps to bring interest rates down. Now, how does it pay for those bonds? By printing money, yes, and keeps the rates down. And this is flys the he sommesen rates.