get rid if the FED...Yabbut, what does Paul Ryno say about this?
Asking for debt holders to take a haircut when they are getting one or two percent on their investment is a pretty tough sell.
If we by-pass spending cuts and fiscal restraint, all debt restructuring will do is encourage more debt. Since Trump is a known debt restructurer (he goes bankrupt too often), this doesn’t sound good.
If Trump plays hardball with the Chinese, Japanese and others over their currency manipulations, then that implies the value of those currencies must rise vis a vis the U.S. Dollar.
This is, in effect, a dollar devaluation—really good for U.S. manufacturing and other exports, because it makes our prices more competitive around the world as well as here at home.
Of course, the price of stuff made other places will rise . . . but, if all goes as planned (including changes in corporate tax code), the manufacturing capacity will rapidly build up again in America to replace that supply, and of course Americans will have a far stronger economy. A little pain for a lot of gain.
BUT HERE’S THE POINT: A dollar devaluation also means that all debts can be paid off with cheaper dollars.
THIS IS NOT A DEFAULT . . . but it has some of the same effect. I think this is the strategy behind Trump’s claim the national debt can be paid down in a reasonable number of years (along with removal of regulatory burdens in energy, healthcare, education; and restructuring of Pentagon budget favoring vets but eliminating pork-barrel programs like F-35).
So the answer is part growth, and part restructuring, together with allowing the dollar to get cheaper.
IT IS REALLY THE ONLY WAY THAT MAKES SENSE FOR AMERICA!!!
Interesting since the us debt is owed to the federal reserve bank
Does the question become: “how big a discount is the fed willing to take?
Would this be something similar to the “short sale” of real estate after the 2008-2009 recession?
We pay about 230 billion a year on the debt with T bonds averaging about 2%. If interest rates on T bonds rise to a level of 4%, interest on the debt will be about 500 billion. At that point the USA is Purto Rico.
...and Odungo responded, “ah ah ta...ah err..as..
and you know what?”
8 years of Obama’s economic policies. The great one, eh?
Raise your hand if you really believed the US could pay back $19 trillion. :-)
Remember when Hillary and Bill claimed they were broke after leaving White House? I mean, you are paid very well for years and end up broke? Not to mention perks galore.
So why vote for Hillary who will be the one to supposedly implement fiscal policies?
This should be brought up, IMHO.
However for the longest time I have been thinking as an intellectual exercise, why have a "Bond Ladder" with Treasuries etc. when the full faith and credit of the US is truly? Why not laddered corporates instead? Do you have more faith in P & G, J & J etc etc people that make the basics for other American's or 2 chambers filled with the equivalent of 535 Smuckey Chumers...
get rid if the FED...Who are these idiots running the government who don't know this basic principle of negotiating? I have done it three times myself personally, and was successful in paying off two of my mortgages at hefty discounts. I paid off one $34,000 mortgage early for only $20,000. It wasn't considered a default by the lender. I offered to payoff the balance a year early but I only had $20,000. The lender accepted that amount for the loan payoff to get their money back early.
Trump is a businessman. He is used to doing this. He is only suggesting that we negotiate with China to release some of their debt at a negotiated discount. With our Treasury debt with China, just add a bunch more zeros but the principle is the same.
ONCE UPON A TIME, OBAMA'S COS EMANUEL HAD TWO JOBS Soon as they occupied the WH, Obama and the Chicago con artists (a) took control of the US Census; (b) Obama placed his COS Rahm Emanuel in control of the US Dept of the Treasury (oversees the IRS).
PAUSE TO REFLECT First-term Obama had tight control of Treasury; Obama calculatedly placed his then-COS Rahm Emanuel in a dual role.......in the WH and at Treasury. Obama had a stranglehold on Treasury via COS Rahm Emanuel's dual role
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THE SMOKING GUN---WSJ REPORT--On Jan 20, 2009 Timothy Geithner was appointed Obama's Secy of the Treasury. But within three weeks, the Obama White House tightened its grip on Treasury. Obama put his COS, Rahm Emanuel, in charge of Treasury---Rahm Emanuel's dual role was an unusual move.
When he got to Treasury, WH COS Rahm Emanuel was so involved in the inner workings that the phrase "Rahm wants it" had become an unofficial mantra among subservient govt staffers, prostrate in obeisance, scurrying to accede to Rahm's wishes, according to Treasury government officials. Reported by WSJ / 05/31/09
More here: http://online.wsj.com/article/SB124113406528875137.html
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EXCERPT---FOURTEEN TRILLION DOLLARS Behind The Real Size of the Bailout; A guide to the abbreviations, acronyms, and obscure programs that make up the $14 trillion federal bailout of Wall Street
SOURCE motherjones.com
Mon Dec. 21, 2009 12:23 PM PST
The price tag for the Wall Street bailout is popularly put at $700 billion—---the actual size of TARP--the Troubled Assets Relief Program. But TARP is just the best known program in an array of more than 30 overseen by Treasury Department and Federal Reserve that have paid out or put aside untraceable money to bail out financial firms and inject money into the markets.
To get a sense of the size of the real $14 trillion bailout, see MJ chart at web site. A guide to the pieces of the puzzle includes massive untraceable Treasury Department bailout programs.
Money Market Mutual Fund: In September 2008, the Treasury controlled by Obama/Emanuel announced that it would insure the holdings of publicly offered money market mutual funds. According to the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), these guarantees could have potentially cost the federal government more than $3 trillion [PDF].
Public-Private Investment Fund: This joint Treasury-Federal Reserve program bought toxic assets from banks and brokerages—as much as $5 billion of assets per firm. According to SIGTARP, the government's potential exposure from the PPIF is between $500 million and $1 trillion [PDF].
TARP: As part of the Troubled Asset Relief Program, the Treasury controlled by Obama/Emanuel made loans to or investments more than 750 banks and financial institutions. $650 billion has been paid out (not including HAMP; see below). As of December 21, 2009, $117.5 billion of that has been repaid.
Government-sponsored enterprise (GSE) stock purchase: The Treasury controlled by Obama/Emanuel bought $200 million in preferred stock from Fannie Mae and another $200 million from Freddie Mac [PDF] to show that they "will remain viable entities critical to the functioning of the housing and mortgage markets."
GSE mortgage-backed securities purchase: Under the Housing and Economic Recovery Act of 2008, the Treasury controlled by Obama/Emanuel may buy mortgage-backed securities from Fannie Mae and Freddie Mac. According to SIGTARP, these purchases could cost as much as $314 billion ---SNIP---.
LONG READ---go to web site to read more and checkout the shocking financial charts.
SOURCE http://motherjones.com/politics/2009/12/behind-real-size-bailout
About 30% of the national debt is from US government agencies to the US Treasury. For example when FICA money comes in, it is not immediately spent, but goes to the Treasury where it is counted as debt.
Maybe we could just print more money. On the new, higher denominations we could put feminist and ‘social justice’ heroes. When we get to billion dollar notes we could honor Comrade President for Life Mugabe and the Weimar Republic.
I have been advocating for a default on this forum for 3 or 4 years.
I’m surprised Shiff hasn’t been knocked off yet.
I think we all need to be praying for Donald Trump’s safety.