Economy

Tansy_Gold

(18,167 posts)

3. Actually, I know very little about bonds

Mon Jan 2, 2012, 10:26 PM

Jan 2012

Except that if they have to be redeemed they are not "sold." They are still loans. They still have an interest charge that means, essentially, they have to be bought back for more than they were "sold" for. The Chinese aren't just giving the US government free money; they expect to get it back and they expect to get more than they put in.

If the US, or any other country, isn't exactly begging hat in hand, the fact that they have to sell bonds, whether Treasury bonds or savings bonds, indicates that they need more money than they have. They are selling a debt, selling a promise to repay the money at a stated point in the future. That's still money that's coming from someone else.

Why do you think they call it debt?

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Debt may be a long term problem, but it certainly isn't an emergency [View all] eridani Jan 2012 OP

You might want to take a look at this thread from a couple days ago on the same topic -- Tansy_Gold Jan 2012 #1

What you apparently fail to grasp, is that a Treasury Bond isn't money "borrowed". A HERETIC I AM Jan 2012 #2

Actually, I know very little about bonds Tansy_Gold Jan 2012 #3

Then I'll do my best to help you understand them just a little more. A HERETIC I AM Jan 2012 #5

Excuse me, but I think you just agreed with me, except where you misunderstood me Tansy_Gold Jan 2012 #6

It depends on which debt. westerebus Jan 2012 #4

Dear Westerebus, Po_d Mainiac Jan 2012 #7

The reason to Keep Your Powder Dry is on the way... westerebus Jan 2012 #8

$20? Po_d Mainiac Jan 2012 #9

Randon notation AG. westerebus Jan 2012 #19

I tend to fergets the $40-48 ramp job. Dog farts have lingered longer than that. Po_d Mainiac Jan 2012 #23

Curious and curiouser. westerebus Jan 2012 #24

Assassinations, 9/11's and other 'Black Swan' cover-ups don't come cheap Po_d Mainiac Jan 2012 #25

datum can suck Po_d Mainiac Jan 2012 #10

What's wrong with transfer payments going up? eridani Jan 2012 #11

That wood be an option Po_d Mainiac Jan 2012 #20

Or we could shorten work weeks and raise or maintain pay eridani Jan 2012 #22

#23 is deceptive -- makes me distrust the rest of the claims, ayuh. Tansy_Gold Jan 2012 #12

The key words are 'private sector' Po_d Mainiac Jan 2012 #13

But the numbers are still deceptive Tansy_Gold Jan 2012 #14

You are talking money (which is worse) Po_d Mainiac Jan 2012 #16

But even the number of contributors isn't apples to apples Tansy_Gold Jan 2012 #17

It ain't a left or right thing Po_d Mainiac Jan 2012 #21

You're All Having a Par-tay, And Didn't Invite Me? Demeter Jan 2012 #15

It didn't start out as a par-tay Tansy_Gold Jan 2012 #18

As long as the debt is denomonated in dollars it makes no difference. Sam1 Jan 2012 #26