Would you buy government securities (bonds, savings bonds, t-bills etc.) to help pay off the national debt?

Question

I am doing research on government, money and the public. Would you purchase savings bonds, T-bills, notes, bonds, or TIPS from the government to help pay down the debt. I would also like answers from Canadians (please indicate if you are). Would you purchase Canada Savings Bonds, T- Bills, Notes and Bonds to help pay the Canadian Federal Debt?

If you answer this question, can you answer this one as well?
http://answers.yahoo.com/question/index;_ylt=Ar5FycHiD0piMzyvRUU_bFjsy6IX?qid=20061203045226AAnyq3t

Thanks!

To US users...
take into mind that billions of dollars in interest payments flow to China and Japan because they own nearly 20% of the debt securities... (No I'm not trying to show any political colour here. This is part of my research)

To answer William E's question. (Based on my Economics studies), by buying government securities increases demand for them, lowering the interest rate they set at thus (in theory) helps the government pay less interest. Also Savings Bonds have lower interest rates than the other securities which (in theory again) is cheaper for the government.

Answer 1

bad move...liberals will only wratchet it higher. liberal spending, like alchaholism has a root cause and needs a lifestyle change for a cure.

Answer 2

I question whether buying government securities pays off any national debt--first a security is an instrument of government debt itself--it must be repaid and with interest. So how does that pay off the national debt? Second, even if you can find an answer to my first proposition, with the Bush administration plunging us into even more debt with a useless war that should never have been started, what point would there be in trying to retire national debt--he'll just incur more.

So my answer is no, and it doesn't reduce the debt anyway.

Answer 3

Keep in mind that a debt instrument (bond, etc.) is a loan. You do not "pay off" a debt by further borrowing. There are times when it may be expeditious to increase borrowing because present interest rates are lower than those of the debt instruments you might replace, but that is not paying off debt in any real sense.
In addition, why would my motive as an investor be to pay off the national debt. I should think it would be to maximize my investment return given reasonable parameters of risk and reward. Adjustment of the national debt is for economists and politicians, not investors.

Answer 4

Goverments will always refinanice debts owned, and t-bills, and other instruments are not risk free because the payout could be worth less than when the person bought the goverment bonds, t-bills to begin with. Getting a premuim on the bond is the goal, but goverments always refianaince debts when interest rates allow it. and China feasts on American debt to support thier ecomony processing of industrialization.

Answer 5

No, because as soon as the debt got paid down, the legislators would run it right back up again.

Answer 6

Not with the "Smirking Chimp" In Office,but maybe If Hillary was in the chair!At least we would know that it would be counted correctly!