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bigapple1963

(111 posts)
10. not sure why you think my points are unrelated to your points
Fri Feb 1, 2013, 02:48 PM
Feb 2013
The wealthy "support" government more with bonds. The rest of us support it with taxes. Since interest on the bonds have to eventually be paid by tax revenue, it means money is being transferred to the wealthy.


This almost sounds like the "rest of us" pay taxes while the rich just lend money and don't pay taxes. I was merely pointing out that the rich actually pay most of the taxes.

And it also sounds like the rich have this scheme to suck money from the "rest of us" through interest on the bonds. I was merely pointing out that no one forces the government to borrow, and if it wants to, it should pay interest on its bonds. Or do you think that the rich shouldn't lend money because they don't deserve the interest? Or that the rich should lend money without expecting any interest back? I'm curious as to exactly why you think borrowing from the rich and paying them interest is so bad.

And who actually owns the debt (US Treasuries)? I think the vast majority is owned by governments (e.g. Social Security Trust, other countries, states and locals), pension/mutual funds, banks and insurance companies. Now which of these categories do you consider "the wealthy"?

http://useconomy.about.com/od/monetarypolicy/f/Who-Owns-US-National-Debt.htm

When the economy turns down, the wealthy want to be sure, above all else, that they will be paid.


This sounds like you think we shouldn't prioritizing paying interest/principals on the debt. Or maybe you think only the rich shouldn't be paid. Hence my point that this would be a default.
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