Ron: > > A socialist government on both a federal, state, and local basis would > > probably buy corporations by issuing bonds.
Jim Devine: > why not expropriation? it really depends on the specifics involved > with the creation of a socialist government. Ron: Expropriation would be a hard sell and very disruptive to the economy. Rule of law is important as are many of the rights that we have now. Are you willing to tell a retiree that her stocks and bonds in GE are worthless? Ron wrote: > > Federal debt mostly consists of bills, notes, bonds, and TIF securities. > > The >> average maturity is about 5 years. Bonds are issued with a maturity greater >> than 10 years, but only comprise 11% of the debt. Jim Devine: > I'd guess that the Treasury decides what bonds to issue based on (what > I think of as) standard financial principles, i.e., that long-term > bonds should be issued to finance long-term projects, short-term bonds > to finance short-term cash needs, etc. They don't follow the principle > of "hey long-term interest rates are low, so we should lock them in by > selling a bunch of long-term bonds." Maybe a businesscritter such as > Mitt Romney would follow this principle? ;-) -- Ron
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