SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : The Justa & Lars Honors Bob Brinker Investment Club
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: JF Quinnelly who wrote (7777)8/16/1999 9:38:00 AM
From: Boca_PETE  Read Replies (1) of 15132
 
JFQ: RE: < By retiring national debt, there is no loss of money in the system. >

I'd say your statement is true if you are narrowly focused solely on the transaction to buy back national debt.

However, I believe a broader focus on the effect is necessary. The consequence and sequel to national debt retirement is lower go-forward government expenditures for interest expense on the retired debt. Thus, cash is paid out initially to retire debt. Then that cash is recovered over time in the form of lower than otherwise government expenditures for future interest until such time as the entire initial outlay to buy back national debt is recovered. From that point forward, the effect is an annual loss of money in the system imho.

P
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News