Would "Recovery Bonds" work? Like War Bonds, you know.....

[theophilus]

Could the Gov. issue bonds at a really good rate of return for five or ten or ? years so that we as Americans could loan the country money and get a nice return on the other side of this mess? Anyone think this would be good?

[David Ricardo]

1. They're called Treasury Bonds

And right now the rate is low because everyone wants them (safe, low-risk returns).

[theophilus]

2. What denominations do they come in? If the rate was higher and

the purpose was to use now to help us out of this mess would that be better?

[David Ricardo]

3. Why should the rates be higher?

People are already pouring money into them with low interest rates.

[Paulie]

4. It's about US owners

We need bonds for US residents only, to keep that money onshore.

[David Ricardo]

8. China disagrees with you

they're certainly willing to be 'patriotic' as the OP puts it.

Keep what money onshore? It was the Chinese to begin with. I'd shudder to think how our government would run w/o the debt financing.

As long as GDP grows faster than the debt, it's generally assumed we're alright. China has no incentive to see us collapse as long as we owe them money. Government debt isn't really all that bad as long as it doesn't grow faster than GDP.

[RB TexLa]

10. Selling bonds to people outside of the US brings money into the US

Or is there another reason you want to keep a safe investment away from non-Americans?

[Paulie]

15. Interest leaves with foreign owners

So less money supply available for spending on US goods and services.

[RB TexLa]

16. US goods and services are sold all around the world

any other reason you would want to prevent non-Americans from being able to invest in t-bills?

[Whoa_Nelly]

5. Some well-written articles regarding your question

http://www.istockanalyst.com/article/viewarticle/articleid/2842349

http://findarticles.com/p/articles/mi_qn4179/is_/ai_n11774401

[theophilus]

11. Thanks for that info. It looks like something could help if done

right. Treasury Bonds seem to have such a low return that they are becoming less attractive. Thanks again.

[Blue Meany]

6. Maybe if they were for sustainable infrastructure investment...

not a bad idea.

[theophilus]

7. That's sorta what I'm getting at. It pumped some money into

WWII and there were great shows to go to see touting the bonds. Sounds win/win to me.

[David Ricardo]

9. Not if your money can get a better return elsewhere

If you can get a better return on your money somewhere else, but take a lower return in the name of 'patriotism', you're basically just paying taxes again, since you're giving money to the government straight up.

[theophilus]

12. I'm just thinking of ways to help with the recovery. If the economy

truly collapses I don't have enough money to make any money with high yield instruments. I'm just a little fish. I just wondered if all of us little fish got together we could help the country through this without going further into debt, etc.

[Name removed]

13. Deleted message

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[Warren Stupidity]

14. I think the idea is to get people to spend, not save.