Earlier today, in reference to the ongoing futile scramble to delay default, Josh Marshall said the following:
The centrality of debt holders in our constitutional order isn’t a bug, it’s a feature. Indeed, the national debt — created through the federal assumption of state war debts — was created to do precisely this: get the holders of bonds, necessarily wealthy and powerful people, to have a vested interest in the fixity and stability of the federal government.(emphasis mine)
How odd. Wouldn’t where the favors and rent came from to fluff the existing concentration of wealth (the state and its inevitable corruption), not to mention the expense they’d otherwise have to take out to defend absentee property were it not lumped in as a “public good” be incentive enough? If not, why would government bonds matter in the end?