Should government allow purchase of "war bonds" to help the economy?

[mozirry]

Just an idea.

During World War I, war bonds were used to take money out of the market to control inflation (not necessarily fund the war effort)

In this crisis we are in right now, the war being fought is against the economy. (And Iraq). Inflation really hasn't hit us quite yet since commodities have plummeted from last years levels, but maybe bonds wouldn't be such a bad idea to help gov' finance rebuilding programs.


What would happen if the government issued "GUARANTEED" savings bonds called "Freedom Bonds" or "Patriot Bonds" to help recover this economy?

Instead of borrowing money from china, we could borrow from the coffers of peoples couches and spare pockets.

 

[The-Noid]

Have the fed print more dollars and increase M2. The USA is for a weak dollar with a hint of inflation of say 4% to help pay for out debt and punish those who buy it instead of assets inside our country.

 

[RichardE]

They were used in WW2 as well. They are better used as a way to sell a war. Give the people the idea that they are participating in the war on the home front.

This only works in popular wars.