Re: National Debt

On May 9, 6:12 pm, "Dan in Philly" <d...@xxxxxxx> wrote:
"Steve Campbell" <SteveCampb...@xxxxxxxxxxxxx> wrote in message ...
The Fed needs some national debt to conduct open market operations
with bonds that are its primary tool for regulating the economy with
the money supply and, thereby, controlling inflation. Some criticism
of a very large national debt follows:

1. ...
2. ...
3. ...
4. ...

These responses might have been a little too clear & logical for many
sci.econ participants.

5. The compulsory sale of bonds by the Fed to finance the debt reduces
the money supply and increases the value of the dollar against foreign
currencies.

That's why the Fed is a net *buyer* of bonds. The *Treasury* sells bonds to
finance the debt.

Dan in Philly

What about the notion that if you can carry the debt, the debt is no
problem.

.

Relevant Pages

  • Re: Apple stock hits all-time high!
    ... The income tax goes to pay the interest on the national debt alone. ... The income tax that we pay hasn't anything to do with the national budget in this case as the income tax payments are an instrument to discharge our tax liabilities. ... Federal Reserve member banks hold less than 10% of these bonds -- slightly more than Japan. ...
    (comp.sys.mac.advocacy)
  • Re: Apple stock hits all-time high!
    ... The income tax goes to pay the interest on the national debt alone. ...
    (comp.sys.mac.advocacy)
  • Point Paper on the National Debt: Summary and Conclusions
    ... The tax cuts Bush gave to the wealthiest are simply a continuation of Republican trickle down tax cuts that distribute income unfairly and invariably produce a deficit. ... Since the Neo-Conservative movement has become the dominant force in the Republican Party the national debt has grown and continues to grow at an unsustainable rate, by any measure you care to use. ... Our economy can and will endure the downward vortex of this misguided Neo-Conservative trend as well. ...
    (alt.politics.bush)
  • Re: The worst market crisis in 60 years - George Soros
    ... The deficits steeply declined during ... having to pay interest on that debt. ... The national debt never declined under Clinton. ... don't threaten the economy -- it's the aggregate national debt that does. ...
    (soc.retirement)
  • Re: The worst market crisis in 60 years - George Soros
    ... lack of backbone amongst our politicians. ... having to pay interest on that debt. ... Individual annual deficits don't threaten the economy -- it's the aggregate national debt that does. ...
    (soc.retirement)