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Would it were $47,495 per household. Most Americans would have a net worth $47, 495 greater, although some of that is held by pension funds of which ordinary Americans are beneficiaries.
I don’t see the merit in owing large amounts to foreigners if you’re paying any significant real rate of interest. In contrast, if foreigners are determined to hold dollars, and they get a NEGATIVE real rate of interest (i.e. after taking account of inflation) then the debtor country profits at the expense of its creditors.And the US, UK and Germany have actually been playing this “negative real rate of interest” trick on their creditors for much of the last two or three years. Creditors who want to hold dollars (or US debt) at a negative real rate of interest in effect want the US to act as their banker. In which case the US should oblige these “bank customers” and give them what they want – at a price.
right Tom... I was referring to how they at first correctly say "government debt"... but then conflate this sector with "households"... In a 3 sector model, here Jeffrey has in discussion the external, govt, and households, one cannot assign the same "debt" to 2 sectors simultaneously... Or even in a 2 sector model, here just for instance govt and housholds, you cannot assign the same debt to both sectors simultaneously... No matter how you look at this CNS strawman, whether 3 sector or 2, it violates accounting and mathematics....Never send a semantic person to do the math..... it usually never "adds up".rsp,
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