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View Diary: China Cuts US Credit Rating. Obama Cuts Hawaii Vacation Short. (171 comments)

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  •  Not just rich people (2+ / 0-)
    Recommended by:
    limpidglass, ozsea1

    Any financial counselor in the country will advise you to invest your money is a well-rounded portfolio with more and more of your money invested in government securities as you get older because they are safe.  It's not just for rich people but the middle class and state and local governments, pension funds, businesses, anyone.  Most people have probably received a US Savings Bond from their grandmother.  

    I'm all for a shake up in our top-heavy economy but you're completely and utterly uninformed and really venturing into conspiricy-theory territory when you're going on about government securities like this.

    If a prudent move is for the government to buy back outstanding securities I'd be all for it, but right now we need government spending on infrastructure and other stimulus, not debt buy-back.  Once we're back on stable economic ground (by reigning in the tea party and Libertarian know-nothings in the House, and with a global economic recovery) we can then start working on buying down our debt load but until then there's really nothing dangerous or irresponsible about having US government debt.

    Can we decrease our imports and bring jobs back to the United States?  Absolutely, and that should be part of a bigger rebuilding plan that we would use debt spending to achieve.  Part of that would be that we need to provide incentives for creating jobs in this country and disincentives for shipping jobs overseas.  A "buy american made" promotion would also help by educating some of these low-information Libertarians and Republicans and making it patriotic to pay a little more for American-made goods while shunning cheap, low-quality imports.

    [Terrorists] are a dime a dozen, they are all over the world and for every one we lock up there will be three to take his place. --Digby

    by rabel on Wed Dec 26, 2012 at 10:33:01 AM PST

    [ Parent ]

    •  Your comment presupposes a monetary (0+ / 0-)

      constraint that does not exist in actuality. The system that actually required us to use the bond market as we do disappeared in 1971 with the gold standard. The debt stood at less than half a $trillion. So virtually all of the current debt has accrued since leaving the gold standard. You want to claim conspiracy theory territory, it is your claim. Mine is the collaboration of greed, ignorance and willful misdirection causing us to engage in costly and nonproductive business. If you believe $360B is a fair price to pay for what we could otherwise get for $40B, I suggest you organize a campaign committee and run on it.

      Why don't you check out a few MMT sites and get another perspective before calling for tin foil hats. Most of the MMT community endorses a full employment economy as fundamental with various proposals for a job guarantee.

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