Coming Soon: Perpetual BONDS
U.S. Treasury Secretary John Snow . . . raised eyebrows in debt markets on Thursday by responding to questions in a television interview, and later from reporters, about the possibility of a 50-year bond by saying he could "never say never on anything."Why bother setting a time limit on bonds anyway? In fact, why bother selling bonds to begin with? Why not just sell American citizens at auction?
What do we need bonds for? Bonds are just a pesky formality that in the end result in debt slavery. That's what it amounts to when our government sells a treasury bond, which is nothing more than a promise that taxpayers and their offspring (a.k.a., debt slaves) will pay over time, PLUS interest, no matter what.
Pressed again on the issue as he visited the Chicago Board of Trade on Friday, he told reporters . . . "[W]e're always looking at all options. That's what you get paid to do when you are looking at the domestic finances of the United States. I didn't rule anything in or anything out, but we wouldn't be fulfilling our obligations if we weren't looking at all the options we might want to pursue," Snow said.Stop LYING. If you were 'fulfilling' your 'obligations' and wanted to 'minimize the long-term cost of issuance to taxpayers,' you would NOT issue interest-bearing bonds. You would issue interest-free bills.
"Our objective here is to issue Treasuries in such a way that minimizes the long-term cost of issuance to taxpayers."
STOP LYING TO THE AMERICAN PEOPLE. Ron Paul told the truth, why can't you?
posted by qrswave @ Friday, February 17, 2006
2 Comments:
I am not convinced that interest free bonds would have enough buyers. That is the problem - I really wonder if interest free bonds will have enough people interested enough to raise the money necessary.
That said, we simply are not growing (as an economy) fast enough to repay our debt obligations. We're not. And it appears the only way to repay debt obligations is to issue more bonds so that the current bonds can be repaid!
I really believe at this point the only thing America can and should do is declare bankruptcy and start from scratch.
When no interest bearing bonds are available, people who don't want to risk putting their savings in equity investments will prefer putting it in banks even if they get NO interest - as long as they are guaranteed to have access to the money.
If non-profit community banks, with locally elected boards, are doing all the banking and investing, they will have to compete with eachother to ensure they keep their depositors, or they'll have nothing left to invest.
The point is, there is a big difference between lending at interest and equity investing and if you allow the former, eventually, no one wants to engage in the latter and you end up with nothing but a cannibalistic economy - unsustainable.
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