>So if war bonds are made available, they will be a substitute for . . >.
what? At best, they will offer the same return as ordinary >government
bonds, but carry different decorations. So people who buy >war bonds will be
doing no more for their country than people who >choose postage stamps with
a patriotic theme. At worst, war bonds will >offer a lower return than
ordinary bonds. And if some people buy them >nonetheless, what will they
finance?
I don't know. My retirement perhaps. At this point I'll take them (savings bonds, whatever you want to call them) over mutual funds invested in US or Japanese stocks. When was the last time the federal government actually pushed savings bonds instead of applauding people putting their life savings into volatile stock funds or junk bonds? Perhaps this means a turning back from the drive to put social security into the stock market (for what, oh remember the forecasts of a Dow at 36,000?).
As for Krugman's usually sharp analysis (heavy irony): does this guy GET PAID to do this?
Charles Jannuzi