“Now we will see the effects of what doubling the debt does.”
There is a natural market price for money, just like everything else. Interest rates (at least for the big boys and mortgage seekers) are far too low, and the economy will be distorted until they find that natural level.
The problem is that we have built up a $20T tab that we have to keep rolling over because we can’t pay it off. The carrying costs are barely manageable at current super low rates. Go to realistic rates and financing the debt will immediately become the largest budget line-item, crowding out a lot of other things. I think we should take our medicine and let rates find their own level, but it will be bitter medicine indeed. It will send the economy into a tail-spin and virtually guarantee that Trump will be a one term president. Then, in time, things will get better.
” I think we should take our medicine and let rates find their own level, but it will be bitter medicine indeed. It will send the economy into a tail-spin and virtually guarantee that Trump will be a one term president. Then, in time, things will get better.”
There is another alternative. IF (and this is only possible under Trump) our government begins to spend less than comes in to the Treasury in taxes and interest rates are higher we can buy back some of our outstanding debt at a discount. Retiring old debt at a discount combined with no new additional debt is a game changer.
LEGALIZE MONEY
Allow alternate money like the Texas Dollar,
the California Dollar,
or the North Dakota dollar who have a stable bank already.
The Federal Reserve is unstable.
FAKE DEBT
The $20 trillion dollars is Fake Debt that does not have to be paid. Issue Red Seal dollars.
INVOLUNTARY
Involuntary debt does not have to be paid. Issue Red Seal dollars.