Though these debates might be reasonable, there are some unreasonable arguments for why government debt is a problem. For example, many people argue that the main problem with the government debt is that much of it is held by foreigners, and that such foreign ownership is bad because interest payments are remitted abroad, reducing the income available for Americans. Such claims have even in spired a proposal that the U.S. government issue new “U.S-only” bonds to Americans and then use the newly raised funds to redeem foreign-held government debt. Application 32-1 explains why such a policy would be unlikely to change U.S. national income.