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keith · 02-10-2005, 10:55 AM

Quote:

Originally Posted by Inquartata

People pay down debt, that results in revenue to the debtors...who pay more taxes on it.

that'll be the taxes paid to the chinese government.

still doesn't help uncle sam put pork on the table.

Soldier · 02-10-2005, 08:25 PM

...say what? Chinese?

keith · 02-11-2005, 02:23 PM

Quote:

Originally Posted by Soldier

...say what? Chinese?

okay the japanese as well - debt holders.

Anyway debt repayment (or saving) is still consumption being delayed or digested. It is not consumption.

Anyhow perhaps we should discuss whether or not the US economy actually needs any more liquidity, or not

Soldier · 02-11-2005, 03:57 PM

Right...missed the part about consumption/digestion/national constipation. Guess we haven't gotten that far yet in Bio.

I'm wondering why you're saying all this debt would go to the Chinese and Japanese.

Inquartata · 02-14-2005, 09:28 PM

Most of the debt is held domestically. Heck, almost a quarter of it is held by the government itself...

keith · 02-15-2005, 10:41 AM

Quote:

Originally Posted by Inquartata

Most of the debt is held domestically. Heck, almost a quarter of it is held by the government itself...

yeah and thats the big problem the mystical social security surplus.

In order to use any of this money debt has to be reissued to non-governmental bond buyers (foreign or domestic).