On Feb 12, 2008, at 4:39 PM, Max B. Sawicky wrote:
> If holders of debt are powerful, wouldn't they prefer their
> borrower -- the Gov -- borrow less? But then wouldn't that make
> them less powerful? Why don't lenders call for higher taxes and
> lower deficits, reducing interest rates and bringing capital gains
> to bondholders?
They're politically opposed to higher taxes. They want spending cuts. Wasn't Clinton's tightness on spending in part a reflection of creditor pressure (aka "the fucking bond traders")?
Doug