We can at least thank Ronald Reagan for indexing our Social Security and income taxes to inflation.
Well, ya think.
The point isn't (at this point at least) to stop the debt from growing but to slow its growth.
Kamala doesn't even understand what the National Debt is or where it comes from.
Stop the bleeding and balance the budget. That would be the first step.
They’ll monetize at first, then there is no option but to repudiate it.
And your existing dollars will be exchanged for a New Dollar at some large discount.
Likely 50%.
And the entire world will burn.
An Overview of Perpetual Bonds
Some "perpetual bonds" were used to finance the 20th century wars, and of course today's reality is the financing of these last decades of war and more war.
This is why the text of our founding documents is so important. "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness."
from the Declaration of Independence
One watches the American Left and RINOs defend corruption and perpetual debt, such that it will become the "duty" -- as the Declaration" states is ours -- "when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
This predicts a time when "throwing off" will come. With it will also come the abrogation of the debt, as has happened in governments of all sorts in past centuries. Who will cry out in anger? Those receiving the "rent" on the perpetual bonds. They were and will always be a small group. Degrow government.
What an astute observation! No wonder he has billions of dollars!
National debt = $ 220 Trillion. = US federal debt plus the states and local debt .
https://freerepublic.com/focus/f-news/4258075/posts
Bring back these.
Pay off the National Debt in hyper inflated Federal Reserve Notes.
Do I have to tell these guys how to do everything?
If someone could cut, slash, and hack at all the waste, there might be progress.
MANY programs and pet projects would need to be gutted thought.
Starting with the DoE and welfare type subsidies, especially to non-citizens, would go a long way.
Oh, we’re never paying that off. Even if there was an earnest effort to do so where all parties were on board, that’s an immense task. Now, throw in political division and stupid democrat/leftist fiscal policy along with the fed’s misguided monetary policy.
Yeah, it’s a matter of when, not if, something catastrophic occurs.
The only thing preventing the dollar collapse is the lack of an alternative. The yuan is a joke (and proof the Chinese are a confucian joke on themselves). Currently the only alternative flight is gold, but which is hard to spend, and thus is almost always converted in and out of dollars. #facepalm
Crypto is also almost always resolved in dollars, even when it is used to purchase goods (or Democrats, SBF-style), but if someone made a stable crypto that was fractionable into a useful daily currency that Joe Sixpack and Manual Laborez could use, and accept as payment (avoiding taxation), and spend thusly in the same manner, watch out.
The debt is going to be cancelled.
If you are on the usury side, make sure your bags are packed.
I slightly disagree with Dalio. When and IF grown men, accustomed to dealing in huge amounts of debt all day every day, get back in charge of the federal government, here are a few things that would/could happen:
1. All debts to the US government by SOME individuals and companies and SOME countries would be an offset to the debt. (meaning effectively that “recourse” against the federal government is wiped out; for example, a bank holding a student loan loses his federal government guarantee but can still go against the student that borrowed the money; same against countries and companies).
2. China’s huge debt to the US would be declared an offset and charged to China to be paid back in trade taxes over many years.
3. Like bankruptcy, “classes of debt” would be prioritized. For example, unsecured debt created/incurred by the US government for the Covid 19 give aways contained a high degree of fraud so that debt will be relegated to the lowest priority (effectively junk debt) than debt secured by.....say....... first liens on prime real estate.
4. Like bankruptcy, the federal government would be compelled to sell off certain assets.
5. What’s left would be financed over 30-100 years.
Anybody that has gone through a bankruptcy (I haven’t) would be familiar with the foregoing. When the time comes, a 2/3 majority in both houses and a willing president will have to create by legislation a special bankruptcy court for the US government. This will allow shifting of blame to the court and get the legislators off the hook. Once in bankruptcy court, and out of the hands of politicians, judgments will start to happen and some will be VERY painful to the debt holder and most assuredly to the American taxpayer. The goal will be to distribute the pain and not let any breathing American off the hook. To get to that point, Congress and the President have to relinguish control of debt liquidation to a bankruptcy court.
The CENTRAL question is will there ever be a moment in US History when grownups take control of the federal government again?
We are Venezuela, intentionally betrayed by both sides of the aisle at the mandatory request of those who own them and us. Plan accordingly.
Argentina, Greece, Venezuela, the United States. Four peas in a pod.
They are going to collapse our government and our currency at the same time.
https://fred.stlouisfed.org/series/FDHBFRBN
https://www.pgpf.org/
The Federal Reserve, which purchases and sells Treasury securities as a means to influence federal interest rates and the nation’s money supply, is the largest holder of such debt. https://www.pgpf.org/sites/default/files/Fed-Holdings-Chart-2022.jpg
Invest in survival food, building materials and ammunition. Lots and lots of ammo. It will be worth its weight in gold when the collapse comes.
Buy physical gold. Every chance you can. Jewelry, coins, bars. If you can find some beneath your feet in your back yard, mine it and hold it.
The only way out is to Abolish the Third Central Bank just like Andrew Jackson Abolished the Second Central Bank and PAID OFF the National Debt for the only time in History. Banish the Den of Vipers to HELL!!!
Actually, it can be dealt with by:
1. dedication of the federal income tax of all persons making more than the highest federal employee salary
2. a sales tax levied on corporate sales
3. dedication of the corporate income tax
4. a federal financial account tax with age-based personal exemptions.