actually the bond idea was something we (republicans) had in our texas platform back in 2000. depending on how its structured, maturity dates, how often the coupon is applied.
think about it:
you can either get a refund check for x number of dollars
or you can get a bond for x number of dollars that when it matures will be worth x+y (y being the interest you earn on the bond)
or if you dont want to wait for your bond to mature you can sell the bond for x + (y/n)
Don't try to throw that "Republicans did it in Texas" bullshit, and believe you are garnering any creditbilty for this idea. It just shows how inept you are.
5 Reasons why bond idea could be a good deal for TEXANS. Although there are much better options for all but the most risk-averse investors.
1. We have a balanced budget law, meaning we don't spend it if we ain't got it.
2. Backed up by the faith and credit of the State of Texas. (Refer to #1)
3. Tax Free interest. Bonds at the State and local levels earn interest tax free.
4. Bond values and yields are stable,and can be relied on, beacuse our Bonds have little to no Interest Rate Risk.
5. Money in Texas stays in Texas, meaning our economy can keep more money circulating through it's citizens due to our State Govts. tight leash on ridiculous spending.
More money for businesses in Texas, along with our free market philosophy of less restriction and red tape; brings more business to Texas. More businesses willing to be in Texas = more jobs in Texas. More jobs = more jobs = more money, more money = more business activity (velocity of money in the economy) more business activity = more jobs. You see where I'm going with this??
5 Reasons why this is stupid idea for Americans.
1. We are in debt up to our eyeballs, and that's only from 1 book. Most of our debt are "Off balance sheet", meaning it "doesn't count." Try that shit at the personal level and you are thrown in jail.
2. Backed up by the faith and credit of the U.S. Govt. When China, our biggest creditor, is divesting their way out of holding $-denominated debt (Treasuries, stocks, munis, etc.) DESPITE the fact that we are their biggest customer; that tells you something.
3. Taxable interest. The meager amount of interest earned on these bonds are taxable, meaning they get to tax you again on the money they gave you.
4. Bond values and yields are fluctuating wildly, with only the Federal Reserves "Investing" (Read: Streetcorner shell game) keeping prices stable and the illusion that our debt is still in demand.
Bond values move opposite yields. When bond yields are higher than previous ones, those previous ones are therefore less valuable, and you will have to sell them below par (at a loss) in order to get rid of them.
Considering our current situation with $2 T
rillion deficits and $ T
rillion deficits for the forseeable future, I am VERY interested in your reasoning in arriving to the conclusion that THIS is the place to put your money.
5. Money in the U.S. stays in the U.S., and gets wasted on pet projects of the Idealogue Govt. that is in power (Right or Left) insteading of paying off the National Debt. If our debt was to be paid off in full, we would save HALF A TRILLION a year in Debt Service ALONE. That is the equivalent of one "Omni-bus spending bill" every year, without having to go ONE PENNY into debt to do it.
Please, try to convince me with your Liberal thinking, and Keynesian economics how going further into debt is preferrable to operating on a Cash/Carry basis. I look forward to this response most of all.
Do your research before opening your mouth. Throwing around First Semester finance knowledge of Bonds while trying to garner credibility for a piss poor idea is better served on a liberal, whom wish to stay willfully ignorant of where the money, and the value it represents, comes from.
One last thing: Quit saying "we" when referring to Conservatives/Republicans. You are in no way, shape, or form, a Conservative nor a Republican.
Your statements claiming to be one are analogous to Maine Senator Olympia Snowe claiming to be one. You are what's wrong with todays Republican Party, and it's disgusting.