At which point should we default?? (small business, wage, jobs, stock)

[Hoonose]

Originally Posted by ncole1

It does not make us money, it costs us money (interest payments). The lender earns money, the borrower spends it.

For those of us who invest it has been a good thing.

For those strapped with borrowing costs maybe not.

But interest rates are low, and business here and in the world is expanding. Much related to the USD.

[ncole1]

Originally Posted by Hoonose

For those of us who invest it has been a good thing.

For those strapped with borrowing costs maybe not.

But interest rates are low, and business here and in the world is expanding. Much related to the USD.

How has the US debt been good for those who hold less in US bonds than the per capita national debt?

[Hoonose]

Originally Posted by ncole1

How has the US debt been good for those who hold less in US bonds than the per capita national debt?

Confusing and confounding question.

The poor shouldn't care one bit.

Individuals who own 5 or 6 figures of Treasuries are making small gains along with the safety and security of those holdings. If they pay a lot of tax they could be net negative there. But I suspect that more typically they have many other investments/holdings and gains.

[ContrarianEcon]

Originally Posted by ncole1

How has the US debt been good for those who hold less in US bonds than the per capita national debt?

The accruing of it has pushed up the AD line.

[ncole1]

Originally Posted by Hoonose

Confusing and confounding question.

The poor shouldn't care one bit.

Individuals who own 5 or 6 figures of Treasuries are making small gains along with the safety and security of those holdings. If they pay a lot of tax they could be net negative there. But I suspect that more typically they have many other investments/holdings and gains.

...which are not dependent on the US being massively in debt.

[ncole1]

Originally Posted by ContrarianEcon

The accruing of it has pushed up the AD line.

Evidence for this claim?

[Hoonose]

Originally Posted by ncole1

...which are not dependent on the US being massively in debt.

We the people, businesses, communities and governments own most of that debt.

[ContrarianEcon]

Originally Posted by ncole1

Evidence for this claim?

Classic Keynesian economics. The government needs to step in and take over spending when everyone else can't.


So racking up a huge national debt is just the government doing its Keynesian thing, pushing the AD line up.

[J.Thomas]

Originally Posted by ContrarianEcon

Classic Keynesian economics. The government needs to step in and take over spending when everyone else can't.


So racking up a huge national debt is just the government doing its Keynesian thing, pushing the AD line up.

Exactly.

And remember they are always heroes.

Private industry is the champion until they need uncle Sam to step in.

[Mircea]

Originally Posted by ContrarianEcon

Classic Keynesian economics.

Which does not apply to Consumer or Debt-based Economies.