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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Dan who wrote (86562)	12/10/2000 3:02:42 PM
From: benwood	Respond to of 132070

Dan, that is a very interesting point about the interest paid on the debt primarily to ourselves. Then we'd pay tax on the interest, and since wealthier people are in T-bills, I'd guess the tax rate would be at least 28% on average. Would the combination of taxes on that interest and the depreciative effect of inflation on the real dollar value of the debt itself actually make the debt a wash situation, or something close to that? That would seem to be something for nothing, so it doesn't seem reasonable. Maybe the air getting let out at every corner would be the dilution to bankers? (what a terrible metaphor). --Ben

To: Dan who wrote (86562)	12/10/2000 4:24:42 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 132070

dan, a percent of the interest is going back to us citizens, for sure. however, the opportunity cost of that money is that principle is tied up. remember your economic stimulus argument? if folks weren't tied up in bonds then more jobs, etc would be created b/c many would choose alternate investments. my #1 fiscal concern is that the time between $5 trillion and $10 trillion will not be that long once we get bad economic times. squirrels use the good times to save nuts so they have something during the bad times. we could learn a lot from squirrels.