Posted on 04/08/2020 4:55:29 AM PDT by Kaslin
There is no “secret” or “unconsidered” way to do away with the debt. There is only one way, and no president, Trump included, is willing to do what has to be done.
The best way and the traditional way to alleviate government debt is with a tariff. It has other benefits too like protecting and promoting domestic industry.
That’s speculation not investing.
A subtle but important difference.
There’s actually a fourth option:
Have China pay for all of it.
Jon Stossel doesn’t understand what is going on. Trump is not bankrupting the US. Trump is bankrupting the Federal Reserve a private bank as part of his plan to reshape the US economy and pay off our national debt.
4. The Constitution says that only gold and silver can be used as money. But who cares what that dumb old scrap of paper says.
Yes.
It is invisible.
How FAST we print it will make a BIG difference.
tariff?
who pays it?
the US customer.
it’s just another TAX on me.
Who better to pay taxes than you the consumer of FOREIGN made goods? We income tax out worker and let in foreign made goods duty free. That is plain damn evil.
I've never seen any interest attached to my cash. Do you pay interest for it? Or do you receive interest?
You're confused.
Neat trick. How's he going to do it?
Bonds don't have negative rates. If they did nobody would buy them. Negative interest rates are applied to deposits that banks have with the central bank. The purpose is to provide an incentive to banks to use that money to lend rather than have it on deposit.
First, the Fed is part of the US government.
Second, how does a bank that can print money, for free, ever go bankrupt?
The Federal Reserve is a private bank that creates currency out of thin air and !oans that currency to the US govt at interest. How do you think we amassed $23 trillion in debt? Govt spending did not get us to $23 trillion. The express purpose of the Federal Reserve is to transfer wealth to the financial elites on wallstreet.
President Trump is in the process of getting rid of the Federal Reserve and at present is effecting a massive wealth transfer of money back to American citizens. This current $2 trillion stimulus unlike TARP is not bailing out banks. Its going to individuals and businesses. Look for another $2 trillion coming shortly behind the first. Much of it to rebuild infrastructure.
The Fed is on life support and Trump is letting them bleed out issuing currency at zero percent interest. Sit back, relax spend your stimulus check and enjoy the show.
It really isn't private.
that creates currency out of thin air and !oans that currency to the US govt at interest.
Can you clarify this claim? Do you think the Fed creates $20s, $50s, $100s, etc. and lends them to the US government?
How do you think we amassed $23 trillion in debt?
By spending more than we collect in taxes.
Govt spending did not get us to $23 trillion.
Sure it did.
The express purpose of the Federal Reserve is to transfer wealth to the financial elites on wallstreet.
How?
President Trump is in the process of getting rid of the Federal Reserve
He really isn't.
This current $2 trillion stimulus unlike TARP is not bailing out banks. Its going to individuals and businesses.
Are you confusing Treasury actions with Fed actions?
The Fed is on life support and Trump is letting them bleed out issuing currency at zero percent interest.
You said they can create currency out of thin air, how does zero percent interest make them "bleed out"?
Yes the Federal Reserve absolutely creates currency and loans it to the US government at interest. Hence the Fed interest rate. Even worse it allow banks to borrow the dollars and then lend out 9Xs that amount ie fractional banking.
Every dollar that goes into circulation arrives with debt attached that is owed to the Federal Reserve. Now that Trump has driven them to zero the new currency is going into circulation with no debt. Those are equity dollars and do not add to the national debt. In fact Trump is just bleeding the Fed dry and is going to stick them with their bloated balance sheet.
Don’t worry its all going to turn out fine. By the end of Trump’s second term he will either have absorbed the Fed into the US Treasury Dept or nationalized them or just let them die on the vine and instruct the US Treasury to begin constructing their own instruments for currency creation like the constitution intended. Enjoy the show.
When was the last time the US government used $20s?
Hence the Fed interest rate.
The Fed Funds rate is what banks charge each other for overnight loans. Nothing to do with the US Treasury.
Even worse it allow banks to borrow the dollars and then lend out 9Xs that amount ie fractional banking.
Banks fully fund every loan. What that means is $1000 in deposits allows a maximum of $1000 in loans.
Every dollar that goes into circulation arrives with debt attached that is owed to the Federal Reserve.
I've got a $20 in my wallet. Do I owe interest to the Fed? Did I ever?
In fact Trump is just bleeding the Fed dry and is going to stick them with their bloated balance sheet.
The Fed's balance sheet is bigger than ever. They hold more interest paying securities than ever. How does that "bleed them dry"?
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