A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments. A bond has an end date when the principal of the loan is due to be paid to the bond owner and usually includes the terms for variable or fixed interest payments that will be made by the borrower. Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debtholders, or creditors, of the issuer.
We will never see a politician with the will to pay off the National Debt again. Why? Because while Jackson viewed personal debt as an "evil" - while the vast majority today view it as "normal". Can you imagine the uproar if a modern President tried to veto every spending bill that spent more than we generated in revenue?!?
And sure, the debt is US Bonds ... but those are UNFUNDED LIABILITIES. State pensions are going bankrupt because they can't fund their future liabilities.
That $1.5 TRILLION tax cut for the obscenely wealthy ought to have been used to pay down debt or fund our survival by spending it on climate change or infrastructure. Why is being a debt a sign of success? I'm gonna ask because I sure think it's stupid dumb! Thank you for your reply Walt! :)
Since I learned the Senate is supposed to "control the purse strings", back in high school ... I always figured the Senate should be more accountants than lawyers.
When my parents bought their house, they had to save 20% down payment. Then, people didn't have to. So they took a larger debt, without showing they COULD save. Now people are complaining because lenders are once more wanting 10-20% down payment on a mortgage. Of course, it's not just that people aren't used to saving - it's that home prices are above the reach of even most "middle income" families.
my2cents 