Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (220589)	2/23/2007 7:22:40 PM
From: Nadine Carroll	Read Replies (2) \| Respond to of 281500

So, you buy into pyramid schemes? That's what you've described. they work if you are a) the US government b) have the world's reserve currency and c) have an economy that grows fast enough so that inflation does not get out of control

To: bentway who wrote (220589)	2/24/2007 3:53:01 AM
From: Elroy	Read Replies (3) \| Respond to of 281500

"when it matures, is “paid back” using the proceeds obtained by selling a new Treasury security to the public. In effect, the debt principal is never retired; it is merely rolled over and over, perpetually." What's the difference between that and what every large telephone company does? Verizon has about $5 billion in cash and $35 billlion in debt. It repays the debt when it comes due, and then issues more debt. All $35 billion doesn't come due at the same time, so its an ongoing process. In the meantime, VZ has tremendous positive cash flows which is used to pay dividends, expand operations and service debt. Same with the US government but the cash flows come from taxes rather than service revenues.