Thursday, November 17, 2011

United States Savings Bonds

I remember buying them in grade school as a youngster, twenty-five cents a week I think I spent.  If I remember right $18 would buy you a twenty-five dollar Bonds, worth that much if you kept them long enough.  I lost all of mine over the years, maybe a hundred bucks worth.
   Savings Bonds of course are our National Debt, that is how we get the money.  62% we owe to ourselves and the rest to foreigners, mostly China.  Bonds are a hot commodity, easy to sell.  We are still a good investment.
   It was 1958, Sputnik just went up and our Freeway Systems were being built all across the United States, the old Route 66 was being abandoned.  We were a growing, busy, industriaalized nation.  Lots was happening everywhere.  The government needed money for all of this, the roads, outer space exploration, the Korean War, fighting the commies and building industry.  They sold bonds to school children to pay for it all.
   National Debt is not a crime.  What makes it bad is when it is used to pay electric bills and day to day expenses.  Like living off a credit card this is not sustainable.  The money owed should be divided into two separate catagories.  Money betting on an optimistic future is a good investment.  Money spent on education, roads, freeways, bridges, all of our infrastructure, clean air to breath and water to drink is betting that times will improve, is offering our children a positive future.  This money spent also provides jobs and immediate results.  A sight to the future needs to be bet on and paid for.  I would buy Bonds for this.
   Most Recessions have lasted less than two years, some much shorter and are considered "market adjustments".  This one is in to its fifth year and has seen over 15,000,000 Americans without work and 25 million without health insurance.  More homes have been lost than during the Great Depression.  All of this means that the government isn't collecting taxes.
   Businesses hire when there is a demand.  It is as simple as that.  And so very complicated to fix it.  More than anything we need to know that there will be a tomorrow and it will have the potential of being better and brighter, something worth working for.
   Austerity measures have not worked in other countries.  They are bleak, depressing, desparate measures that offer soup kitchens and despair for their citizens.  When every day is a little worse it is difficult to find ambition and strength and all of this create a downward spiral just making the situation worse.  We do need inspiration, we need that "hope" we were promised that never came to be.
   In the meantime Christmas Season will be here soon and you can think about what you will give as presents.  No bobbles and cheap tinny crap from Walmart, please, nothing imported please.


freebird said...

I'm back from my trip to CA and can catch up on my blogs. Of course, I came here to see what you were talking about! I agree that debt for future gain (hmmm, like a mortgage or car loan we don't think twice about?) is a good thing and debt to scrape by isn't. Yes, we are still a good bet in this world even if some of the patina is a bit dulled. I think it's good actually as maybe we and the rest of the world will stop thinking we have a never-ending supply of money, arms, food and anything else everyone needs.

stonepost said...

Nice to see you back, Freebird, I've missed you! Hope California was sunny and warm and nice for you!

conservativelybohemian said...

I'm just left sighing. Futility is something that I hate and that is how I feel these days myself.