Comments by "Dr. Ricco Lindner" (@Dr.RiccoMastermind) on "Class 8: “Macroeconomic Policy” by UC Berkeley Professor Reich" video.

  1. I guess, there might still be one mistake in your thought about the national debt: its not owned by holders of government bonds. Since bonds are not the debt. China did not lend money to the USA, investors like pension funds did not lend money to the USA. They only save money with the treasury by buying interest-bearing bonds instead of dollars sitting in their accounts fir nothing. Its only because of policy that government deficits shall be mirrored by the same amount of bonds. The public debt is already spent money thus becoming deposits on private accounts. Interest-bearing onds would technically not be required. It rather takes out money from the productive cycle. And interest payed by the government is just more income for the rich or other states. Thus high interest rates might as well be inflationary themselves if the extra money is spend again
    2