"Jim Devine" <[email protected]> wrote: > this plan isn't needed. In the accounting the US government (but not > that of Greece) can and should be treated as immortat. (I know, but > corporations are treated this way, too, as I understand it.) That > means that the US doesn't have to literally pay off all of it debts. > Instead, it borrows new money to pay off old debts (rolling over), > while making sure that the debt/GDP ratio isn't too high. (I don't > know how high "too high" is, however.) That means that the US gov't > acts _as if_ it were issuing consols.
I think the plan to have high government debt is just a way for the wealthy to have another way to get surplus value from workers who pay taxes which result in payment to bond holders. Interest rates are low now, but they are rising and as governments need to refinance their bond portfolio, the annual expenses may get too high to manage. -- Ron
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