by Summary:
I would suggest considering limiting federal government "bond" sales — with "bonds" meaning term secretaries — to short term notes that are essentially cash equivalents that pay a bit of interest. Longer term government securities can be issue without a term limit, which makes them appear to be "debt" comparable to private debt. The UK has already done this with "consoles." Consols (originally short for consolidated annuities, but subsequently taken to mean consolidated stock) was a name given to certain government debt issues in the form of perpetual bonds, redeemable at the option of the government. They were issued by the U.S. Government and the Bank of England. The first British Consols were issued in 1751.In 1752 the Chancellor of the Exchequer and Prime Minister Sir Henry
Topics:
Mike Norman considers the following as important: public debt
This could be interesting, too:
I would suggest considering limiting federal government "bond" sales — with "bonds" meaning term secretaries — to short term notes that are essentially cash equivalents that pay a bit of interest. Longer term government securities can be issue without a term limit, which makes them appear to be "debt" comparable to private debt. The UK has already done this with "consoles." Consols (originally short for consolidated annuities, but subsequently taken to mean consolidated stock) was a name given to certain government debt issues in the form of perpetual bonds, redeemable at the option of the government. They were issued by the U.S. Government and the Bank of England. The first British Consols were issued in 1751.In 1752 the Chancellor of the Exchequer and Prime Minister Sir Henry
Topics:
Mike Norman considers the following as important: public debt
This could be interesting, too:
Matias Vernengo writes Podcast Failures: Friedman and Chile, Hume and Public Debt
Matias Vernengo writes Public vs private debt
T. Sabri Öncü writes To Loot or Not to Loot? How Public-Private Partnerships Harmed Turkey
T. Sabri Öncü writes To Loot or Not to Loot? How Public-Private Partnerships Harmed Turkey
The UK has already done this with "consoles."
Consols (originally short for consolidated annuities, but subsequently taken to mean consolidated stock) was a name given to certain government debt issues in the form of perpetual bonds, redeemable at the option of the government. They were issued by the U.S. Government and the Bank of England. The first British Consols were issued in 1751.Consols were created to retire the stock (tally sticks) issued by the Crown and accepted in payment of taxes. They are fully negotiable in markets and are issued with a permanently fixed rate of interest.
In 1752 the Chancellor of the Exchequer and Prime Minister Sir Henry Pelham converted all outstanding issues of redeemable government stock into one bond, Consolidated 3.5% Annuities, in order to reduce the coupon (interest rate) paid on the government debt.
In 1757, the annual interest rate on the stock was reduced to 3%, leaving the stock as Consolidated 3% Annuities. The coupon rate remained at 3% until 1888. In 1888, the Chancellor of the Exchequer, George Joachim Goschen, converted the Consolidated 3% Annuities, along with Reduced 3% Annuities (issued in 1752) and New 3% Annuities (1855), into a new bond, 2¾% Consolidated Stock, under the National Debt (Conversion) Act 1888 (Goschen's Conversion). Under the Act, the interest rate of the stock was reduced to 2½% in 1903, and the stock given a first redemption date of 5 April 1923, after which point the stock could be redeemed at par value by Act of Parliament.
In 1927 Chancellor Winston Churchill issued a new government stock, 4% Consols, as a partial refinancing of the National War Bonds issued in 1917 during World War One...
Such securities can be considered as a form of equity ("stock") that pays a fixed "dividend" instead of as "debt" that pays interest. They would function in markets in essentially the same way as "bonds" of indefinite term. They could even be inflation-protected.
While this is essentially only an institutional change in legal verbiage, word do matter in persuasion.
Would you feel safer owning "a piece of the country," or "government debt"? (rhetorical question.) Of course, then the claim would be "selling the country" to pay for whatever rather than "blowing out the debt" that "our children have to pay."