Debt? Replace Old with New…

Sunday February 3, 2013

Don’t Repay the National Debt

http://www.slate.com/articles/business/moneybox/2013/01/perpetual_bonds_a_clever_way_to_manage_the_national_debt_in_a_time_of_low.html

I wish I could join Mr. Eskew in the ranks of the clairvoyantus amongst us, but alas, I did not put it to paper when I had the original thought.

That thought was to just tell all the holders of our debt, aka bonds, that we are calling the outstanding bonds and issuing new ones to replace the old.

I must admit I did not think of this old British ploy, which I must admit is very clever indeed. My concept was just to replace the old higher interest rate bonds with today’s near nothing rates.

The British concept is even better.

I love it, mate.

IB Wright.