". This part of the debt is a direct burden on ourselves and future generations. "
"Foreigners are entitled to receive interest and principal and can use those dollars to acquire goods and services produced here. If our government had used borrowed money to improve infrastructure or to improve the skills of workers, the resulting extra production would have made repayment easier. Instead, over the last decade, it used the money for wars and tax cuts. "
"The Treasury owes dollars, America’s own currency"
" So the Treasury can always make payments when due ... no foreign lenders
realistically expect us to default. If they did, they would be insisting on higher interest rates,
which they aren’t."
.
"One way to effectively repudiate our debt is to encourage inflation. "
"When prices rise, interest and principal are repaid in dollars that are worth less than they were when they were borrowed. "
.
"Treasury bonds owned by Americans are different from debt owed to foreigners."
" Debt owed to American households, businesses and banks is not a direct burden on the future."
" Some of our grandchildren would be paying off others of our grandchildren;"
"The real burden of domestically owned Treasury debt is that it soaks up savings that might go into useful private investment."
" Savers own Treasury bonds because they are seen as safe, default-free assets, and the government can borrow at lower rates than corporations can. If there were less debt, and fewer bonds for sale, savers seeking higher returns would invest in corporate bonds or stocks instead. Business investment would expand and be more profitable. "
"But in bad times like now, Treasury bonds are not squeezing finance for investment out of the market"
". On the contrary, debt-financed government spending adds to the demand for privately produced goods and services, and the bonds provide a home for the excess savings. When employment returns to normal, we can return to debt reduction. "
"In the long run we need a clear plan to reduce the ratio of publicly held debt to national income. "
ahh dear old bob
like most neo classical synthetics
he adds nothing even as he clearly states everything
i would offend him by compressing this to:
"please ...just borrow all you want today today today
but bob what of tomorrow and tomorrow and tomorrow ?
feel free my people
to inflate as much as you please away away away away
