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Posted by Balanced View on November 20, 2007, 8:16 am
Ed wrote:
>
>>
>>>
>>>
>>>
>>>>
>>>>>
>>>>>>> Note to clueless: How do you think the US finances it's debt?
>>>>>>>
>>>>>> By selling bonds, loser. Not dollars. Bonds. Dollars. See the
>>>>>> difference?
>>>>>>
>>>>> About the same thing. Interest payments are in dollars, when the bonds
>>>>> mature the holders get dollars.
>>>>>
>>>> Paper dollars don't pay interest, idiot. And everything can be
>>>> converted to dollars.
>>>>
>>> Let me explain, if you buy a bond you are making a loan.
>>> Loans generally pay interest or you wouldn't lend your money. Understand
>>> so
>>> far?
>>> If a country outside of the U.S. buys Treasuries they get paper bonds
>>> that
>>> pay paper interest and when they mature they get paper dollars.
>>>
>> Verrrrryyyy good. The key question is WHEN they mature, moron. Until
>> then, you have a vault filled with pieces of paper called BONDS.
>>
>
> And every 6 months you get paper money called dollars.
>
>
>> If
>> you had a vault filled with pieces of paper called CURRENCY, they
>> wouldn`t be earning interest would they. So yes, there is a
>> difference between BONDS and CURRENCY, which is the point we are
>> trying to make here.
>>
>
> It doens't change the fact that when someone buys a bond they are buying
> money.
>
>
LOL, when you buy a bond you are loaning money to the issuer of the bond
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