On Apr 11, AR- <Ginger.Gr...@[EMAIL PROTECTED]
> wrote:
> >>>>I would rather pay my bills on time and live within my
> >>>>means so that my children (or their children) do not
> >>>>end up suffering the
> >>>>consequences of my irresponsible behaviour.
>
> >>>Your children won't suffer due to any
> >>>such debt. That's a simple fallacy.
> >>>Pay cash, pay over time, same same...
>
> >>>It's the spending, the SPENDING, that's
> >>>irresponsible, not the payment method.
>
> >>So, paying interest in order to get immediate
> >>gratification is responsible, but saving up to
> >>make a purchase is irresponsible.
>
> > You are confused.
> > We're talking about deferred taxes, not a
> > car purchase. If the gummit runs a deficit,
> > that money stays in your bank account; a
> > float. You loan that out to collect interest,
> > which you can use to pay the interest on
> > the debt, later.
>
> I may or may not be saving any money.
> What is certain is that the government
> debt incurs interest and thus, a dollar borrowed
> today will cost me 1+ tomorrow to pay off,
> and this will continue to grow as time passes.
uh, no. You are confused.
You owe a tax debt to the gov't
The uncollected tax is in your bank
account, no problem. It's called a float.
They sell bonds to finance the deficit,
that's your gov't interest. You PURCHASE
bonds, with your float. That pays the
interest which you must eventually
cough up. It's a wash... no loss.
> Writing checks for which one does not have the
> money to cover, is fiscally irresponsible whether
> you're the government of an individual.
You do have the funds to cover that check...
it's called a float. Look it up.
--
Rich
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