Letters to the Editor
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Floating debt
Is it true Debt has to be repaid, or merely that debt has to be serviced?. This is a rather large distinction, especially if you can control the lending rate.
Did America take on the role of the world financial center willingly, or because the pool of labor and the centers of manufacturing moved offshore due to currency exchange rates?
Additionally the BRIC countries have enjoyed investment based on the advantages found in America's financial products.
To be fair most of Wall Street hoped that the benefits of economic developement would turn the third world into replicas of the US 100 years ago. The possibilities were much too enticing, (China is Post War Japan) and allowed the financial engineers to forget all the differences which prevent a smooth transition.
In the final outcome America was overly ambitious, just as it was militarily after WWII. The question of fixed debt instruments is equally arcane. Is it time to simply admit that all debt should be repaid at a fair value to our current economic conditions?. (Yes when the economy improves, you may owe more on that loan, and conversely when the economy tanks you should get a reduction in rates)
Fixed income investors, (who are being cheated by most accounts) are really being paid a fair rate of return based on real economic growth. Why shouldn't debt holders be subject to the same rules?