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  • #31
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    The dollar will eventually be worth nothing. I love how news articles don't cover the "collapse of the dollar." Instead, tell us there is faith in the "strong US dollar." We will see how strong it is when its pouring back into the US like a facet. Time will tell...
  • #11
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    This may be the stupidest thing I've heard since we were told that food stamps stimulated the economy by Nancy Pelosi.
  • #61
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    For every $1 in food stamps puts $1.73 back in economy. Food stamp study done under Bush and expanded eligibility in Nov 2008.
    More white people are on food stamps than minorities. It is good for small business. Having said all that, I think the amount people get is too high. I was poor once and ate ramen, rice, and pasta with my own money. Regardless how good it is for economy, people become dependent on system.
  • #62
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    @Center Thanks for the reply, however, I don't care who the study was done under, it's not logical or rational to believe that every $1 in food stamp money puts $1.73 back into the economy. If that were so, why not ALL of us get food stamps, that would go a long way toward solving our almost 17 Trillion debt. LOL - as an accountant, I just can't wrap my mind around that finding. :()
  • #63
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    @Tralee you have to research to understand how this works. It keeps the deficits at same dollar amount, but it grows the gdp number, which lowers deficits to gdp ratio. Check out Bush's commission on this and how it was explained. This does nothing to pay down debt, but adds to it. Again, the debt to gdp ratio is still a lower percentage.
    A small part of 1.73 is given back to government through taxes.
  • #5
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    This is why our country is falling apart literally. Children, do pay attention to what Matt Yglesias is proposing. This is the mindset we must defeat if we are to continue as a nation.
  • #9
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    Actually they should...i bought a car for my daughter i could have paid cash for, but with 0 down and 0% interest, i saved a lot of money financing it (borrowing money at a zero interest rate...) the money i paid off that loan with was not worth nearly the money i would have spent at the time of purchase...

    this is why so many US citizens do not really understand how our economy works....
  • #17
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    @woodtick57

    I'll agree that the time to borrow is when money's cheap like it is now. I’ve done similar things. But I'll bet that our balance sheets look much better than the country's. You can't take advantage of low interest rates while you’re spending more than you take in.
  • #26
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    @woodtick57 This works now because the gov. is printing money, good for us, we too borrowed at a stupidly low interest rate the money to renovate our house, we can pay it back in less than 5 years using just income and not have to touch our investments, making more than the 2+% and not have to pay the higher taxes we would now have to pay. Not bad for almost half a mil. BUT!!!! This does not work for a country, we get a break because the government is doing a bad job and making poor decisions such as printing money, having this negative interest rate for years and in general doing exactly the opposite of what it should do, good for us, bad for the gov. And, this only works for those with the highest credit rating, John Smith still can't get a mortgage.
  • #27
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    why just this am my 6th grader while having coffee and eggs said Dad I think we should go get a 25 year 5 mil loan at negative interest like Matt Yglesias just think of our return if we were to buy credit default swaps, on the Syrian pound, and the Rial, go short the Renminbi and go long on the Euro 30 -90 day futures we'd be able to pay for college that way. doesn't everyone's kids think that way or just Neo's and my son
  • #30
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    @Thunderchicken

    sure you can. if you qualify for the no or below zero interest rate, it does not matter about your credit rating. in fact, it would improve your balance sheet.
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  • #7
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    From the source article; “Instead, a modern-day consol would target another problem: political reluctance to take advantage of record-low interest rates.” You can’t really do that when you’re head over heels in debt already.
  • #54
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    It won't work as well for us as it did for the Brits, people understand inflation now, and would demand to be compensated for that risk.

    The public debt should be about a quarter of what it is now.
  • #48
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    Another Liberal Moron heard from. Let's see, just like the Trillion Dollar Coin, we could issue, let's say,$20T of perpetual bonds, have about $3T in our pockets to spend on wasteful green energy projects, and the debt is gone!!! Careful spreading this idea around. If Obama found out about this he just might try to pull it off. If this would work well, I wonder why Europe doesn't just do this - it could pay off all their welfare debt problems immediately and let them start all over again. In fact, the whole world should do this - every country, every few years zero everything out. All of us can have unlimited money to spend! Everyone is rich! Before you Liberals go off on me that I am criticizing a great idea, I highly doubt anybody would buy those bonds. I am positive China won't. And....this would literally crash the value of the US Dollar, and any other currency that tried this. We would have to start printing notes with a lot more zeros.
  • #36
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    We'll never repay the debt...we'll just continue printing and spending, like drunken
    sailors, he has no intention of repaying any debt, just to get deeper in it!
  • #2
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    It's an unworkable idea for the simple fact that Washington won't stop deficit spending. In theory if D.C. came in with a balanced budget and lived within that budget into perpetuity then the plan would work. But it won't work if you don't stop deficit spending at the same time as you issue the bonds. Care to bet on which way D.C. would go on that one?
  • #44
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    It's an end run around accountability and typical of goverment to pass the buck to the next dummy that gets elected.The time for fiscal responsibility is long overdue.
  • #50
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    @marine1 No kidding. Remember they used to claim stealing from Social Security was just "borrowing". They said they were going to pay it back.
  • #51
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    @jessejaymes Incompetent people do incompetent things beause that is what they are or are they just plane old high dollar crooks?
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  • #60
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    Wait a minute, we have negative interest? We make money by borrowing money?
    If this is true which completely flies in the face of all common sense then someone please explain. There has got to be a catch.
  • #57
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    This is a ridiculous idea. A bond that never has to be repaid is a gift. Also, the debt service on such a bond is also perpetual.
  • #55
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    We (and every other debtor nation) have no intention of EVER repaying what's been borrowed, because it can't be done (using current methods); if it could've been done, it would have started happening long ago. The people are the only ones who can make it happen, and the powers that be have zero interest (pun intended) in seeing you put it all together because that would upset their apple cart, power-wise.
  • #43
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    This is what happens when you get a mix of politics and economics: A smoke-and-mirrors trick that doesn't fix the problem.
  • #41
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    well hell yes, i will max out all my cards and send them a note not to bill me and i will give them part ownership to a car in the drive!
  • #35
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    On a serious note......better to stick with hard currency......like the trillion dollar coin.
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