If Americans bought US Savings bonds would the National debt start to shift from China to America?
by admin ~ May 24th, 2008 . Filed under: Politics .
oohhbother asked:
Are we willing, do you think?
Would it help anyway?
Does the government even want this kind of public buy-in?
Fletcher Stentzel
Are we willing, do you think?
Would it help anyway?
Does the government even want this kind of public buy-in?
Fletcher Stentzel
May 27th, 2008 at 11:32 pm
Not very much. I am not willing to buy any more U.S. Savings bonds because I don’t like to gamble with junk bonds.
There is also the moral issue: forcing the yet unborn to pay for the interest is immoral. The yet unborn did not agree to get themselves into this debt.
May 29th, 2008 at 9:05 pm
Americans don’t have that money in a recession
June 1st, 2008 at 12:54 pm
Most Americans are either too poor to buy them or too smart to put their money in an investment with such small return.
Why double my money in 20 years when I can put it to work in the private sector and double it every few years?
June 4th, 2008 at 6:28 pm
You would get a better deal from treasury notes, bills or bonds, if you have enough money to buy them at action (a few thousand, depending).
As for the debt, it doesn’t really matter who owns it. But if it makes you feel better, go ahead.
June 7th, 2008 at 5:16 am
That is funny. Have you looked at the recent return on them.
With the US treasury holding over 1 trillion dollars in bad debt. Up over their neck in outstanding debts to other countries, printing tons of money for out of reach spending and the inflation spiral.
The US Bonds are just about worthless. With inflation it would be a loss up front to buy one. That is why China and Saudi are reluctant to make any more loans on them to secure the loan with.
Back a few years ago one could buy a $25.00 US bond for $14.50 and a maturity it was worth $25.00. Now one can buy a $25.00 bond for $24.95 and at maturity it will be worth $16.95 counting inflation and the devaluation of the dollar.
June 8th, 2008 at 4:47 pm
The current national debt is about $9 trillion. China only has $700 billion in US treasuries. That only equals about 8% of the National debt.
Doesn’t seem like much to me.
June 10th, 2008 at 9:45 pm
Yes it would.
This is the difference between the unprecedented debt in the 1940s compared to now.
Economists argue over trade deficits because that money always comes back to us in the form of some investment. I choose to think trade deficits are a downward spiral.
The Federal Reserve issues government bonds via Goldman Sachs, Deutsch Bank, Barclays, JP Morgan, among many others. It just depends on who wishes to invest in them as financial products.
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Good Guy: Most foreign countries see a small return as “smart”. It is smart to bet on the safer investment instead of gambling for a risky return. It depends on your motives I guess. See current Mortgage Backed Security crisis.
Americans dissave anyway…and most people don’t invest. The ones that do so wisely usually have financial planners.
June 12th, 2008 at 5:59 pm
That’s cute. Every man woman and child would have to buy about $80,000 with of bonds to clear the debt (and interest), about an eighth of that to release the debt to china.
Not to be a schmuck, however if I had an extra 80 grand laying around i am not going to invest in the USA, that would be about as dumb as buying enron stock.
June 13th, 2008 at 8:51 pm
This is a good question,but would you want to invest in Obama,Biden,Pelosi,& Frank.
June 15th, 2008 at 4:10 am
It used to be considered patriotic. Did you know that one of the reasons ‘War Bonds” –the predecessor to savings bonds- were issued was to keep inflation in check during WWII. It was an Era of rationing, and obviously low unenmployment The Governmant wanted to keep $ out of circulation and help reduce inflation. anyone remember the stamps you could buy in very small denominations?