Reply #3: Bond traders need debt [View All]

[ramapo]

Without debt bond traders would have nothing to trade. The more debt, the more bonds to sell. Sales equal profits.

Taxpayer money goes to pay bond holders interest. Many, perhaps most, bond holders are fairly affluent. So you're tax dollars get redistributed to the wealthier.

The only bright spot is that rates are low. Perhaps artifically low. So it's not as expensive as it was to service new debt. At some point that will change.