By using this site, you agree to our Privacy Policy and our Terms of Use. Close
mirgro on 06 May 2010
Edit Thread
Akvod said:
mirgro said:
Akvod said:
 

Bonds don't work that way.

That is true, the initial Bonds from the 80s are about to start maturing. The notes from the 200s and all the borrowing the republicans did are also about to Mature. Give it a few years and if countries wanted to sell their bonds the US will be in deep shit. As in, the US will collapse, deep shit.

I'm not advocating constantly borrowing ammounts of money we can't pay back. I do advocate borrowing and running defeceits NOW, and then making sure we have surpluses after the recession and its effects fade, and the economy begins expanding (I have to take Intermediate Macro and study more economics to learn if we should stop expansionary policies now, or later, due to the recession recently ending, but unemployment still high). And the US bonds will always be very be appealing, because we have such a long history of NEVER DEFAULTING (again, Greece NEEDS to pay its debts, in order to prevent loss of all credibilitiy), and don't have the risk of wars, rebelions, RIOTS, MASS-PROTEST (god dammit Greeks >.<).

And we should have capital inflows, for the very reason that we have such a trade and Current Account defeceit. People will lend us money... provided we are able to pay it back, and/or expected to pay it back.

See you are not getting my point. If people wanted their money back in a few years, shit can really go down hill. Even if people want half of the debt back, things will get ugly. That's about 6 trillion out of the economy, hell even a quarter of 3 trillion will be very devastating. The US won't default, but it will get very miserable.