Ron has suggested writing off the portion of the debt the Federal Reserve holds. That is currently about $1.66 trillion or ten percent of our totatal debt. http://www.federalreserve.gov/releases/h41/current/
Ron has suggested writing off the portion of the debt the Federal Reserve holds. That is currently about $1.66 trillion or ten percent of our totatal debt. http://www.federalreserve.gov/releases/h41/current/
The financial sector is really damaged and volatile right know, I don't see how it could survive a souverign debt crisis. And a complete collapse of the entire banking sector would obviously be devastating (no more pensions, insurances, money in deposits, savings, and on the other hand no more needed private sector loans).
But really I don't know if it's better to carry that debt around forever, causing lost decades (or even centuries...) like in Japan.
This is going to be even worse. Everybody pays in 40% which is far more than they are already paying in and then get a whole lot less. At that point even the begger on the street would be talking about revolution and that is the reason why they would never ever in a million years do it.
You can never tax enough to pay off the debt or reduce our deficit; we could abolish the government today and have SS+MEdicare+Medicaid run by an almighty self-sustaining AI and we'd still have deficit and continue to rack up debt.
Also if you choose to raise taxes, at some point it'll start affecting investment/etc. and net wealth will fall so the higher tax rate has a net zero or effect (or worse, negative).
With all the land, buildings etc. that the Feds own, are you sure? What do you think about http://cafr1.com/?
Correct me if I'm wrong but if we have $0 debt with our current monetary system we essentially have near zero money (minus hard assets)?
I've seen her show before, she's not a bimbo. What she's getting at is that taxing everyone the full extent it would take to pay off the debt would show them just how expensive big government actually is. It would force the middle class to get over their 'soak the rich' fetish that's motivated by envy.
That's not how I took it. But then, I don't watch this show so I don't have the same frame of reference you do. For someone like me, who found it on utube, she comes off like someone trying to get people thinking about a flat tax. A rather HIGH flat tax, like the Swedish have. Not surprisingly, a lot of Americans really like how the Swedes are doing things, i.e. taxing the "hell outta everyone", but giving them a cradle to grave existence. Socialism anyone?
They don't want the debt paid off. Money is created from debt. Banks create money when they give out loans. No debt, no money.
Debt = amount of money in the system. My brother is a financial advisor. He also believes in socialism. What a surprise. Needless to say, we have some 'discussions' on this.
Once we pay off this 16 trillion and collapse the economy, what about the other 50 trillion that is just around the corner?