stilldropin20 wrote:dckingsfan wrote:stilldropin20 wrote:I’m saying do away with Bonds. Issue notes. Legal tender. Greenbacks. Like Lincoln did. Like Kennedy used.
Nothing will be backing the know but the good faith and credit of the United States government. No bonds. Tender will be debt-free and interest free.
We already do that - see the Fed
Notes are dollars. If you issue a massive dollar (notes) influx to cover our debt the value of the dollar would fall precipitously. It might actually be the best way to take money from the rich (as Zonk advocates). Suddenly the value of everyone's money would be worth half.
Yes yes exactly. That’s why I said issue notes instead of bonds. legal tender. Actual money.
That’s not what we do right now. Right now the Fed issues bonds. Small and large investors Buy those bonds which “converts” to “money “ aka notes. That we borrow against. And pay 5% interest to the Fed. You get rid of the bands. And essentially the Fed. And we are no longer paying 5% interest to the FEd.
we would likely see massive inflation. Not only would we see massive inflation but we would see a massive amount of credit available as well we would end up in a full blown bull economy as we would essentially thrust an additional 20 trillion in to the world economy.
The inflation would be a huge hidden tax. And especially to the wealthy elite and especially to all the foreign investors and our coastal real estate markets. They would take a huge hit.
Where mom and pop in small-town USA just have to hold onto their home and they don’t really take a hit. So you could step 2 trillion per year for 10 years to limit the negative impact. But I say just ripped the effing Band-Aid off and pay off the entire thing.
This is the only magic bullet. It’s likely the only bullet.
Actually, they do - their house is worth 1/2 the value. Their savings are worth 1/2 as well.
Let's say their net worth is 100,000. It would still be $100,000 but the dollar would be worth 1/2.
A Billionaire would still be a Billionaire but again, the dollar is worth half. One problem with this is that others with dollars might sell quickly and the dollar might fall to something like .2. Those nasty unintended consequences.