Quote:
Originally posted by shakran
Sure the GDP looks good NOW, but as I've said it is NOT sustainable. Our output exceeds our maximum output potential. That can't go on forever, and the longer we wait to do something about it the worse it's gonna hurt when the whole thing breaks.
Uh, if the government pays off debt, they buy back the bonds from the bondholder. Sure, that puts money in my pocket, but it's money I lent to the government in the first place. That's a VERY different story from giving me a refund on money I OWED the government. Paying off bonds is paying off a debt. Cutting taxes is giving expensive presents in a time when the government can't afford to.
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Please substantiate the first statement here. It's absolutely dumbfounding. How can our output possibly exceed our "maximum output potential"?
Yes, you lent them money and you were paid interest on it. Without government bonds what are the "safe" investment alternatives that limit risk to investors?
The government does not need more money. They need to be held accountable for the ways they use the money they already get.