> Judah wrote: > So yes, we want to pay debt down but not in such a way that it means > that people don't want to buy our debt anymore
Zackly. Cause if that happened, no more Iraq War. Let's say our country produces 100 widgets per year and we also print 100 dollars. Then each dollar is "worth" 1 widget. Let's say we go to China and tell them we'll pay them back 25 dollars in 2012 if they lend us 20 dollars today (since we want to go to war in Iraq). They agree thinking in 2012 they'll have 25 "widgets-worth" in exchange for 20 widgets-worth today. So 25 widget-dollars. Now lets say in 2011 we decide to double our printing and print 200 dollars, but we still can only produce 100 widgets. Now each widget is worth $2. When 2012 rolls around we pay out to the Chinese, but let's say in widgets. If each widget is worth $2 then we owe them 12.5 widgets since 12.5 widgets * $2 = 25 widget-dollars. Great for us, they got screwed. So we go back to them and ask to borrow more so we can keep fighting in Iraq. They'll rightly tell us to go pound sand. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:286501 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
