Investment bankers do much of their business underwriting government bonds, in the United States and abroad. Therefore, they have a vested interest in promoting deficits and in forcing taxpayers to redeem government debt.

In this quote, Murray Rothbard is critiquing the role of investment bankers in the financial system, particularly their involvement in underwriting government bonds. Rothbard suggests that investment bankers have a vested interest in promoting government deficits because they stand to benefit financially from the issuance of government debt. By underwriting these bonds, investment banks facilitate the borrowing of money by the government, and in return, they profit from the transaction, creating a conflict of interest where the bankers are incentivized to support policies that increase the government's need to borrow.

Rothbard argues that this relationship between investment bankers and government debt creates a cycle where the banks push for larger deficits. This, in turn, forces taxpayers to be responsible for redeeming the debt, essentially funding the government's borrowing through taxation. Rothbard’s critique is rooted in his Austrian economics perspective, which emphasizes the dangers of inflationary policies, excessive government spending, and the centralization of financial power, which he believed led to economic instability and growing government control.

The origin of this quote is tied to Rothbard’s broader economic philosophy, particularly his views on the government's role in the economy and the relationship between financial institutions and the state. As a leading figure in the Austrian school of economics, Rothbard was highly critical of the financial system that relied on debt and central banking. He believed that investment bankers and government officials worked in tandem to perpetuate a system of borrowing and debt, which he saw as detrimental to individual liberty and economic health.

Ultimately, Rothbard’s statement underscores the incentives created by the close relationship between banking and government debt. He believed that the financial system, particularly through the underwriting of government bonds, was designed to ensure that investment banks continued to profit at the expense of taxpayers, contributing to a cycle of deficits, inflation, and economic dependency on government debt.