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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Mike M2 who wrote (232129)3/29/2003 2:20:53 PM
From: Joan Osland Graffius  Read Replies (1) of 436258
 
Mike,

I was thinking of holding the debt not servicing the debt. How much US debt can be absorbed or willing to be held by the public, corporations or foreigners with a negative return relative to purchasing goods using the asset.

The Japanese were experiencing deflation during the 1990's and the citizens and corporations were willing to hold debt at close to zero interest rates because the purchasing power of their capital was stable. We have a very different situation going on in this country today where we are experiencing inflation and return on US "risk free" debt is in absolute terms negative.
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