Debts Quotes
The very act of printing money created a debt—at the time and until the Nixon Administration which went off the gold standard—the government owed the gold or silver and the spicie—the printed money—was a promissory note.
The Congressman was notorious for his extreme and unusual views of things. See {606976} for another of his extreme statements which turned out to be untrue. McFadden quotations are sometimes used to show that there is almost no limit to how absurd a view a politician in general, or a member of Congress in particular, might take and make public.
At the time, the George W. Bush Administration policy was to have the United States running a very large trade and budget deficit—the largest in the history of the world. In order to finance the deficit, the U. S. Government had to borrow money and it did so by selling bonds and other financial instruments. Many of these were purchased by Asians, but Paul’s point was that they were “propping up” American spending habits and might not continue to do so.
3rd Viscount Palmerston. This historical quotations illustrates the worst of the British Empire. British merchants were making large profits shipping opium to China and selling it there. Drug addiction became a major problem and some local Chinese Authorities passed laws banning the importing and selling of opium. However, the English merchant ship captains paid no attention to these laws claiming their rights as Englishmen to free trade. The Chinese finally seized a number of shipments of opium and burned them. The British then appointed Captain Elliot to lead a squadron of ships to China, arrange for payment in compensation for the value of the seized opium and to open up the opium trade, by force if necessary. The Chinese position was not unreasonable and Captain Elliot was not able to secure the concessions the English government wanted without starting a small war with the loss of many lives. Temple, who was the Foreign Minister at this time, fired Elliot and replaced him with someone who was less concerned about problems of drug addiction and the Chinese. Thus began the First Opium War. Note that the then British view of equity was that if they had to send an expedition of ships and soldiers to force the Chinese to allow the English to sell opium, then part of the terms must be that the Chinese pay the costs for the British ships and soldiers who invaded their country and forced them to keep poisoning their own people. See {621319} for Captain Elliot’s view.
Debts accumulated by the allies in World War I was still outstanding a decade later. When it was proposed that the United States help reduce this debt, President Coolidge remarked:
One of the great clashes of early America was between Alexander Hamilton and Thomas Jefferson over the Federal assumption of State debt. Jefferson’s opposition was based in large part on his class distrust of moneyed people, banks, and finance professions whom he saw almost as an enemy army. His description of Hamilton’s scheme which historically proved to be critical to the new nation’s development was:
This remarkable quotation illustrated the historical hatred aroused by the concept of government debt. Bryan, a religious man, states that debt is worse than murder. But a little over 100 years later, George W. Bush, also a very religious man, incurs a debt larger than all Presidents before him combined. Yet he thought it virtuous and best for the country. Both men were fundamentalist Christians.
“Slaves” in this passage referred to indentured servants. This concept is referred to as the “Jubilee” where once every 50 years all the land reverted to the original owner or heirs even if it had been rented or sold. Land therefore, was very cheap as the Jubilee year approached, as it would have to be given up. And this command of God made sure that no one could be in servitude forever.
See {604501} for another of his statements. It was Alexander Hamilton who called the national debt a national blessing. See {207891}. Jackson was convinced that a moneyed class who held the national debt could dictate to any administration by threatening to not renew their bonds. The same concern was expressed at the beginning of the 21st century regarding the Chinese and the Middle Eastern countries which held do many of our bonds.
Greece, as a Euro member of the European Union, was able to borrow large amounts of money. However, most of it disappeared as the result of massive corruption and huge waste. The Greek government, to mask the facts, produced false economic reports to the European Union and other lenders. When this was discovered, no one was willing to lend money to Greece until there were major reforms.
