Wednesday, December 16, 2009

War Bonds Proposed to Pay for Iraq, Af-Pak

So we are indeed in a depression like the last big one, when people struggled to survive and at the same time did the patriotic duty by buying war bonds from the government.

War bonds proposed to pay for Afghanistan, Iraq conflicts
(Lesley Clark, 12/16/09 McClatchy)

"WASHINGTON — Lawmakers in both houses of Congress have introduced legislation to pay for the wars in Afghanistan and Iraq by using a method that's a throwback to prior U.S. conflicts: war bonds.

"Saying that it would "promote national shared sacrifice and responsibility," Rep. Kendrick Meek, D-Fla., introduced a bill Wednesday in the House of Representatives that would authorize the treasury secretary to issue and sell war bonds to Americans to fund the wars.

"Sen. Ben Nelson, D-Neb., filed companion legislation in the Senate earlier this week.

""At a time of tremendous sacrifice for our military families, we need to promote shared sacrifice and shoulder collective responsibility as a nation as we fight two wars halfway across the globe," Meek said, calling war bonds a "cost-effective way" to reduce dependence on foreign creditors.
He also said the bonds would "create an outlet for Americans to express their patriotism and support for our service members as well as the security mission for which they are deployed."

"The legislation comes as Congress debates ways to pay for the wars, including a tax on the wealthy. Critics note that the bonds must be repaid eventually, merely postponing the debt.

"The United States last issued war bonds during World War II."

(The article continues.)

I'm wondering why these lawmakers think such war bonds sell. Who would buy them? Oh I forgot, a great number of Democrats are now for these necessary wars, now that their guy is at the White House.

Or just like the health care bill that's currently stuck in the Senate, would they force people to buy them somehow? Have ACORN push the bonds to patriotic low-income working class people?

I suggest they make it mandatory for any member of Congress who voted for the $634 billion defense appropriation bill (which doesn't include the cost for the surge announced by Obama) today to buy them. And allocate to each one of them certain number of bonds so that they can sell them to their friends, family and relatives.

Better yet, just let the Federal Reserve do what a central bank was set up for: to fund the war by accepting the government debts and print out money. War bonds would suck up the money from people who would have used it in productive ways. Then when the wars are over (if ever), the government would have to pay off. How would it do that? Either by raising taxes or printing more money and pay off through inflation. Who would be the sore losers? American people who bought war bonds.


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