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Posted by Geoff on 03/23/07 17:59
"Lawrence Glickman" <Lawrence_Glickman@comcast.net> wrote in message
news:g2480319lpovvotce5avaeomto06rbhq6h@4ax.com...
> On Fri, 23 Mar 2007 11:11:01 -0600, zzpat <zzpatrick@gmail.com> wrote:
>
>>Useful Info wrote:
>>> Congress Sets New Federal Debt Limit: $9 Trillion
>>>
>>> Full story here:
>>> http://muvy.org/
>>>
>>
>>FYI, as of March 21,2007 the Bush debt stood at $3,106,078,604,091.32
>>($3.1 trillion), not $3.3 trillion.
>
> Fact of the matter is, the Fed Gov only gets enough money to pay
> INTEREST on its' debt. It never has enough money to pay the financial
> principal.
>
> This seems to be OK with the banks, because they *think* Fed Gov will
> live forever, and they will get the principal back sooner or later.
> It isn't OK with people we owe money to, like China.
Well they do get their principle when the bonds mature. What they don't get
is, of course, equity. That's one reason why companies use the bond market
too...debt without losing equity. Of course, you can't buy equity in the US
government in the traditional sense....yet.
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