>
>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
Tightness in spending and borrowing. But I think your point takes you around in circles. There is current debt and debt not yet incurred. Austerity entailing less new debt favors current debt holders. O'Connor's point implies no distinction, just capital seeking to increase its hold on the Fisc by increased indebtedness. Which is it?