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Nobody says, \"Hey, we should pay off some of our debt with this extra
money. In fact, it\'s not extra money because we could always pay off our debt with it.\"
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It would not be good if the government would pay off all the debt cause
there would be no more bonds to invest money in, wouldn\'t it? You are a finance major, right? So I expect a good
answer..
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You\'re 100% correct. T-bills, T-notes, and T-bonds (and savings bonds...remember when you
wanted a toy when you were a kid and got one of those instead??? Bastards) help to fund the government...which is
why you see at the bottom of my previous post that over 90% of the national debt is funded by Americans themselves.
In reality, there is no \"need\" to rid the national debt because bonds are an essential part of the US
marketplace, and for every person who sells one, there\'s usually someone who wants to buy one.
However, I hate
the feeling of being in debt and paying any type of interest, so I naturally want to pay off anything I owe right
away. Also, if you paid $1,000,000,000 extra per year over the base interest payment on the national debt, it\'d
still take 4,000 years to pay off...so it\'s not going anywhere, believe me.
/ubbthreads/images/graemlins/wink.gif The national debt has only been $0 once in American history, and it
was done by the famous forefather Alexander Hamilton. He was shot, and thus the debt began again...
Was that
good enough of a reply, Franki, or should I go into supply, demand, mu, sigma, expected returns, standard deviation
of risk, and individual versus systematic risk?