Hillery says US should control foreign debt ownership

They will continue to do so as long as they have fiat money to do it with.

I agree though, some day I would like some Alfa Romeo or Porsche money for the greenback. As long as we aren't on the gold standard, we will never have Ferrari money.

You must get Ron Paul's newsletter?

Mark my words, this is a sister policy to their "antiwar" stance. Obviously US investments and military missions will be denied by the dimbocraps, with "Hilery" at the beachhead of this feminist socialism gone to its last throws of death spiral socialist economy rationalization of taking systematicaly from the productive to prop in lesser amount the unproductive.

She should reread the Vagina Monologues herself, especialy about the part of the abused vagina, and think to herself if her jealous brand of abusive lesbianism is what is causing her own skin to fall off.

Our debt is floated on the open market. We cannot force people, companies, and central banks of other countries to buy it. They place bids at their pleasure, at a price they find acceptable according to their own criteria.

Socialists, being totally clueless as to how the free market works, think they can put more and more restrictive conditions of these debt instruments. As with almost all socialist-originated good intentions, all that will happen is that it reduces the value of what is offered. In the case of debt, it drives down the price which raises the rate of interest we must pay.

The Great Depression was caused by several things, most of which were caused by government policy run amok. One of them was monetary policy, which is not too much of a question today. The other was the sudden and substantial increase in tariffs of imported goods, a tax that had the effect of bringing world trade to a near-halt.

If anyone in Congress even starts to hint that we are going to impose conditions on our debt instruments that are being purchased by foreign governments and banks, they will substantially reduce their purchases. This will have the almost-instant effect of a drastic increase in domestic interest rates and a drastic decline in the value of stocks. Also in the drastic column will come a drastic increase in the amount of the federal budget that must go to paying the interest on the debt we perpetually roll over rather than pay off. And we can kiss the tax receipts from capital gains goodbye.

So, if we want to experiment on how to cause another halt to world trade, we can experiment with ways to make our debt so unattractive that the buyer goes elsewhere, or sits on his money.

Why do politicians that claim to be so smart base their economic assumptions on what they hear from pundits?

Only two reasons; they really are stupid

or they found an issue that they can be a demagogue with, with the assumption that most people are ignorant and will believe they are making a good point; which between Hillary and the Dim base is probably a fare assumption to make.

...."with the assumption that most people are ignorant"....

They know their base. I don't ever bring it up, because I can't prove it, but years ago, I read a study that claimed the Dems average education was less than High School level. I thought that can't be right with all the News media and college professors, but then they pointed out the number of unwed mothers, drug addicts, welfare queens, union knee breakers, and other constituents that hung on their every word. Recently there has been an article pointing out the Hollywood left that was a waiter before becoming rich and somehow knowing all about global warming after they became rich.

I have described them as "being kept on the Democrat plantation" by the liberal elite. The elite don't have any common sense, and the slaves just say "yes Massah".

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.