I've firgured out how to solve the US Debt problem

[Ken H.]

I don’t think this is politics, but if the mods disagree, then of course close it.

 

Did you know that the US Fed government actually isn’t in debt? Or at least not as much as assumed. It goes like this:

 

China holds $1.1T in US debt.

 

But an additional $6.3T in debt, created by US Treasury securities (bonds) issued to fund day-to-day operations, have been purchased by other arms of the US federal govt. The Federal Reserve, Social Security Trust Fund, Medicare Trust Fund, etc. And those are actually bookable assets. And because interest is paid on those bonds, the assets are actual creating a return.

 

It’s actually sort of like borrowing from your IRA. You take the money out temporary, pay it back in over time with interest, thus creating a gain for yourself.

 

So the REAL answer to the US’s debt problem is to create so many assets to sell to itself that their value exceeds the debt created to create them. Ta-da! Problem solved.

 

 

 

 

 

 

FUBR

 

[Polo]

Easier thing would be to just nationalize a few industries, like banking, oil and railroad, and then sell them back to their original owners. Presto Changeo! Revenue generated overnight!

 

It's worked many times in socialist countries, don't know why it wouldn't here.

[4wheeldog]

Easier thing would be to just nationalize a few industries, like banking, oil and railroad, and then sell them back to their original owners. Presto Changeo! Revenue generated overnight!

 

It's worked many times in socialist countries, don't know why it wouldn't here.

 

Uh, maybe because we are not, nor are we in danger of becoming, a socialist nation? (Despite what some others have convinced themselves.)

[Francois_Dumas]

It's worked many times in socialist countries, don't know why it wouldn't here.

 

Actually, come on over and have a look around: it did NOT work

 

[Francois_Dumas]

Ken, there is not a real problem because all that money that is continuously being talked about does NOT EXIST..... and never has.

 

It is virtual, created only on computer screens, sold as hot air to investors and other poor sods and can be just as easily ignored as long as nobody demands to get it in his/her hands.

 

So as long as we just push it around electronically there is NO crisis, NO debt, NO problem. The only REAL problem is the PRESS who keeps whipping this up and some politicians who are using it for their hidden agendas.

[Polo]

4wheelDog & Francois, I had my tongue pushing my cheek so far it hurt.

 

However selling nationalized businesses was a veeeeery good fix for Mexico during the Salinas Regime, just ask Carlos Slim. A curious note, his signature is virtually indistinguishable from Carlos Salinas', ain't that something?.

[upflying]

You can also try inflation, that will eliminate the debt problem.

[Francois_Dumas]

 

I know Polo...... but there are poor souls wandering around these here forums that might actually believe you... so I am being careful

[lawnchairboy]

or currency devaluation, the current strategy.

[OoPEZoO]

Thanks guys. Been a long week and I needed a good dose of sarcasm to make me crack a smile and get on to the weekend.

[leikam]

The problem with the US debt hasn't been about assets for 41 years.

[doc47]

Ken, there is not a real problem because all that money that is continuously being talked about does NOT EXIST..... and never has.

 

It is virtual, created only on computer screens, sold as hot air to investors and other poor sods and can be just as easily ignored as long as nobody demands to get it in his/her hands.

 

So as long as we just push it around electronically there is NO crisis, NO debt, NO problem. The only REAL problem is the PRESS who keeps whipping this up and some politicians who are using it for their hidden agendas.

 

Best summary of the non-existent problem I've seen yet.

[Francois_Dumas]

Thanks Doc !

[Patallaire]

Cool, lets also sell the federal buildings to whomever is using them, IE; FBI or IRS, and have them rent them back to us so we create a positive cash flow and those departments are no longer overhead!