Bush's Fiscal Success

[Vanguard]

Originally posted by Kidicious

Usually when bonds mature they are financed by new issues and no more liquidity is added into the economy and there is no inflationary effect. The exception to this is where there is a change in the level of foreign investment into the country.

And when money wears out, it is replaced with freshly printed money. No real difference.

And of course it goes without saying that this is not what is actually happening with US debt. If it were, we would have no deficit. But not only do we have a deficit, it is very large and growing rapidly.

[Kidlicious]

Originally posted by Vanguard


And when money wears out, it is replaced with freshly printed money. No real difference.

And of course it goes without saying that this is not what is actually happening with US debt. If it were, we would have no deficit. But not only do we have a deficit, it is very large and growing rapidly.

Investors have a lot of confidence in US bonds. As long as they do there will be no problem.

[Vanguard]

Originally posted by Kidicious


Investors have a lot of confidence in US bonds. As long as they do there will be no problem.

Yes, as long as investors have a lot of confidence in US bonds we will continue to increase our borrowing from them until they no longer have confidence in US bonds.

What happens then?

[Kidlicious]

I don't know. I'll probably be dead.

[Vanguard]

Could happen sooner than you think.

[realpolitic]

Dan, Bush's financial priorities are apalling - he cut $51 million in 2003 to Lousiana levee's, while later apoving $180 million in that state around 2004 to build a Hooter's there- I doubt Katrina left it standing.