>> “They better all start doing some serious cutting independent of this debt ceiling bill.” <<
.
Feckless in view of where the money is really going: Interest on the treasury bonds.
We have to just cancell the bonds and pay them. Print the cash to pay the bonds; cash doesn’t pay interest. This will not have any inflationary consequences because the bonds are a part of the money supply anyway, and it will be a simple exchange. This tactic is known as “monitizing debt” but in reality the bonds were what caused the monitization when they were issued, and therin lies the inflation; i.e. it is in the past.
Obama’s friends in the Socialist run banks will scream bloody murder, but they are the thieves that created the problem over the last 100 years anyway; screw them.
Then we start cutting so that no more borrowing is necessary.
Cancelling bonds and paying them off when they are not callable is a violation of contract as serious as an outright default. It would have enormous negative ramifications on banks, insurance companies and private investors.
It would also be enormously inflationary as bonds are not part of the most commonly used definition of the money supply. They are not cash or checks and do not have the liquidity of either.
Our problem was not created by the banks or the government but by the People voting crooks, cranks and humbugs into office. As long as the People can be bought off nothing will change.
...”friends in the Socialist run banks will scream bloody murder”...
Why? what exactly is the negative effect that would have on them if they get cash for the bonds? how does that bloody them?