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View Diary: 'Borrowing from China' -- another Romney debate lie (77 comments)

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  •  Correction: (2+ / 0-)
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    hestal, devtob

    I guess if you're just going to print the money and give it to the government, there wouldn't even be any Gov. bonds.  That would create a whole bunch of problems in itself.

    Where would the money go that is going to Gov. bonds now?  My guess is it would go into the stock market and real estate... and you would blow up several bubbles like the financial one that just burst.

    •  The money that is going to government bonds now (1+ / 0-)
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      would either go to special bonds that bore a very low interest rate, just as our bonds do today, or it would go to actual investments in America. And if the people who have the money don't want to invest in America then let them invest elsewhere.

      Because our bonds currently bear low interest rates, but people with money continue to buy them, must mean that those people can't find a better investment. Rather than invest in manufacturing solar panels or developing some other form of energy, they continue to buy low-interest bonds.

      If the stock market or real estate were better investments then the people with money would invest in it, but they don't.

      So, we should start charging a negative interest rate for our bonds.

      And if those people with money start speculating and creating bubbles then we will just have to tax them on appreciation to let the air out of the bubble.

      Problem solved.

      Might and Right are always fighting, in our youth it seems exciting. Right is always nearly winning, Might can hardly keep from grinning. -- Clarence Day

      by hestal on Sun Oct 07, 2012 at 01:36:22 PM PDT

      [ Parent ]

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