Quote:
Originally Posted by UnderseaLcpl
The amount of Public debt that China holds is of some concern to us. IMO,as the Federal government has long since passed the point of no return when it comes to borrowing from other nations, and even our own nation. There is absolutely no way we will ever pay back what we owe, a prediction evidenced by the US government's particularly terrible record of paying people back. Ever buy a federal bond? I hope not, because the vast majority of bonds, once capital gains tax and inflation are factored in, end up costing people money for the dubious priviledge of lending money to the government.
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The "debt to China" is due to their purchasing what is known as Treasury Bonds. Up until very recently, China was the single largest foreign holder of Treasury Bonds, but still represented a small fraction of the foreign holdings of Treasury Bonds.
Please give a citation on the last time the United States defaulted on a Treasury Bond?
I will make it easier. Please give a citation for the FIRST time the United States has defaulted on a Treasury Bond?
"Ever buy a federal bond? "
Yes, all the time. Been doing it for almost 30 years. I wish I could afford Treasury Bonds
. Even cashed some in. I had to pay taxes on the interest just like any other investment. But the taxes were still only a fraction of the interest and was only federal tax, no state taxes.
Yes we have a lot of taxes in this country. But don't confuse paying taxes with a government bond defaulting. Yes, government bonds don't pay a lot of interest. The reason? Very Very low risk. But government bonds are like any other investment. If you earn interest, you have to pay taxes.
There are pundits who are predicting dire times when the US government defaults on its Treasury Bonds. Some of these pundits are old and have been predicting the same things for years and years.