For several years now I’ve followed the perspective that the Federal Reserve is the most formidable adversary to the United States and its citizens.
With respect to what Congress is attempting to do now, I don’t care if they write a 10 trillion dollar bill.
There’s an old banking proverb that I have extended to the current era: “If you owe a bank millions, you have a problem; owe a bank billions, the bank has a problem; owe the bank trillions, the bank is toast.”
Take a good look at this:
Now as your eyes gloss over, imprint this one fact on your brain:
IT IS IMPOSSIBLE FOR AMERICANS TO EVER PAY OFF THEIR NATIONAL DEBT.
Each US Citizen owes more than $465,000 in national debt. An American family of four owes more than $1,860,000 of the national debt.
Can’t be paid.
Absorb the following facts:
1. The President wants a return to the gold standard.
2. The President nominated and the Senate approved Judy Shelton as a board member to the Federal Reserve.
3. Judy Shelton is in favor of returning to the gold standard.
4. Judy Shelton is in favor of bringing the Federal Reserve inside the Treasury Department and deactivating it.
5. The President prominently hung the portrait painting of President Andrew Jackson behind his desk in the Oval Office.
6. The President wants negative interest rates.
7. The United States is now the largest producer of Oil and Natural Gas in the world and holds more proven petroleum reserves than any country on Earth. Its NG reserves dwarf anything else on the planet.
Consider the following:
Refinance all of the national debt and more for a total of $50 Trillion in federal reserve note currency at an interest rate of -6.5%.
The Federal Reserve will then pay the United States Treasury $3.25 Trillion per year.
The $1 Trillion dollar federal deficit will be wiped out in less than 4 months, allowing for lowering taxes on Americans by at least 25% across the board.
The negative interest rate revenue added to the growth of tax revenue from lower taxes stimulating the economy will top $7 Trillion per year leaving a budget surplus of at least $2.5 Trillion.
Four years of applying such budget surpluses will total a $10 Trillion reduction, and when used to pay down the national debt will leave $12 Trillion remaining achieving a Debt to GDP ratio of 12:22 or less than 55% down from current 106%.
Concurrently issuing Treasury-issued US Notes indexed to gold replacing the fiat federal reserve notes gives the United States great flexibility to leverage its oil and natural gas dominance to further reduce its national debt and liabilities per citizen and to preserve and protect purchasing power.
The extra initial borrowing of $50 Trillion less $22 Trillion US Debt yielding a negative interest rate asset of $28 Trillion can be held on the books and used to offset any remaining national debt.
At the end of the transition from the fiat federal reserve currency to the US Note currency, the $28 Trillion negative interest rate asset held on the books can pay off the remaining $12 Trillion in national debt at a net $28 - $12 = $16 Trillion in US reverse bond assets.
Distributing the reverse bond asset of $16 Trillion across 330 million citizens yields $48,000 for each citizen or nearly $200,000 for a family of four.
To offset inflation, the reset of fiat currency to gold indexed currency leveraged with the oil and NG dominance allows the US purchasing power to remain strong, thus deflating inflationary pressures.
Americans learning how to make things again, repatriating American manufacturing will further reduce the balance of payments and further boost US purchasing power.
Bottom line is America enters a Golden Age. The President has used precisely this description of where he will lead the country.
The Great Trump Reset.
The Great Trump Reset.
Great post. Very informative.
The Gold standard will make a return eventually. Interestingly Trump is appointing Fed members who want to return to a gold standard:
National debt is not demand debt. It's not a mortgage where you go to a bank and borrow new money at a lower rate to pay off an old loan at a higher rate. In order to retire debt you have to buy it on the open market, and the debt you will be retiring will be selling at a premium. So for every $1 trillion in debt you retire you will probably be paying $1.1 or $1.2 trillion to get it. And good luck getting anyone to buy debt with the negative rate you quoted.
The Federal Reserve will then pay the United States Treasury $3.25 Trillion per year.
No, the federal government will pay the treasury $3.25 trillion per year. The Fed acts as the agent for the treasury but the debt is serviced through tax revenue.
Per citizen it is not $400k, it is $80k.