The Federal Reserve created money out of nothing for quantitative easing and then declared that it is trillions of dollars of federal debt owed to them. So why not just say "you created the money out of nothing, you get nothing from us". Let the mystery people who own stock in the Federal Reserve do without forever-payments to them.
Bravo, that is exactly what I am thinking - eliminate Fed reserve and forget the ‘debt’ !
Federal Reserve money buys US debt from the Treasury.
Treasury pays it interest on its bonds.
Profits (after operating costs) are RETURNED to the Treasury to the tune of
BILLIONS every year.
Over a third of the US debt is owned by the federal reserve system.
It does not operate the way most people think.
That essentially is what they have already done. The money supply has been expanded. There is no plan to ever retract it. That money is here to stay. The American people have been permanently robbed through higher prices.
Seems that I remember Charles Collins when he ran for President saying that it’s in the papers that were signed when the Federal Reserve was created that there is stipulation that we can buy it out for $60 million.
The Federal Reserve is actually owned by the largest banks. The idea I had was “free ride over, bud”. The government bonds owned by the banks are immediately transferred to our countries social security recipients and the banks get to amortize that transfer of capital over the course of 10-20 years. The people getting social security get the PV of their monthly payments in bonds and can either sell a percentage of them every year or live off the interest or a combination. That takes a huge chunk out of the national debt right there.
cba123 in the previous comment points out that unless we are bringing jobs back to America we are just selling off the country. Republican governor Erlich of MD tried/or succeeded in selling state owned assets, and was not reelected. The current Republican governor made no such rash promises, but did promise to cut taxes. He cut the bridge toll crossing the Chesapeake to the beach from $6 per car to $4. People notice that every day. Small but smart.
Regarding creating money out of nothing, I am reminded of a bank idea I had a while ago. Banks and other lend huge amounts to dictators in underdeveloped countries. Then when the dictator is overthrown the new government is saddled with that debt which is now resting in a Swiss bank and being enjoyed by the deposed dictator. We should have a very clear policy and list of countries that are considered oppressive to their people. We should state that anyone lending to that country with that dictator is on their own. A new government will not owe payback of the loan, lenders can collect from the dictator and his cronies.