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"It depends on what else those dollars could be doing. If they can be invested in the economy at large and yield more than 5.X% consistently, then it is definitely better to allow foreigners to finance the debt, while we invest in our businesses at a higher overall yield. "


Shrewd point, as is your usual comment, and I totally agree. My unspoken hope, by getting the public more involved in the saving process, would be to also get them more involved in the budgeting process so that they would begin to exert their voices about how those borrowings are spent and might make a shift from consumption (which is what war spending is, for example) to genuine investment.

The US can be slammed for a lot of things but the one area were no one can match us is "Yankkee ingenuity " and entrepeneurship. Often that entrepeneur is operating on a shoestring budget and with the meagerest of savings, but just think what this country might be if the process of captial formation and deployment were more widely understood and supported.

Was it Marx who dismissed the British as "a nation of shopkeepers"? I'd like to see the US characterized as a nation of small investors, and investing begins with saving.


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