DEBT SERVICE SOLUTION
Submitted to…Please share,
The interest on the Fed bonds that we are PAYING to the top 10%ers is close to $700 billion (2015 entitlement) and is expected
to be over $724 billion for 2016. It is in the budget as “debt service” ..That does not satisfy the GREED of the banks so now the Fed has instituted a new entitlement..”that will likely total $24 billion in 2016″..”for holding our money in deposit.”
Please anyone ask L Randal Wray, “Is this correct”
Please also ask ANYONE that wishes to cut ENTITLEMENTS ! DO NOT CUT SS, DO NOT CUT MEDICARE, HERE’S $728 billion.
Solution is a proven method: Call the bonds and replace them with 0% interest interest “US TREASURY BEARER BONDS”(USTBB).
As L Randall Wray stated, “When I’ve engaged advocates of debt-free money, my protestations always generate confusion and the topic gets switched to government payment of interest. The “debt-free money” cranks hate payment of interest by government. I’m not sure, but I think what they really want to do is to prohibit government payment of interest.
That is fine with me. ZIRP forever. Stop paying interest on bank reserves, and stop issuing Treasury bills and bonds. I’m with them. Advocate ZIRP…”
Issue USTBB, allow the holders the safety of the American Dollar being held for them until they seek redemption.
Then proceed to pay off the entire Federal Debt?
***The ease with which the government’s debt could be paid in this way was demonstrated in January 2004****
As the chairman of the Coinage Subcommittee observed in the 1980s, the entire federal debt could actually be paid in this way. The Federal Reserve has already established that it can issue $4.5 trillion in accounting-entry QE without triggering hyperinflation. In fact, it has not succeeded in triggering the modest inflation the exercise was designed for. As with QE, paying the federal debt in this way would just be an asset swap, replacing an interest-bearing obligation with a non-interest-bearing one. The market for goods and services would not be flooded with “new” money that would inflate the prices of consumer goods, because the bond holders would not consider themselves any richer than before. They presumably had their money in bonds in the first place because they wanted to save it rather than spend it. They would no doubt continue to save it, either as cash or by investing it in some other interest-generating securities.
The ease with which the government’s debt could be paid in this way was demonstrated in January 2004, when the US Treasury called a 30-year bond issue before its due date. The bonds were redeemed “at par” to avoid a 9-1/8% interest rate, which was then well above market rates. The Treasury’s January 15, 2004 announcement said that payment would be made “in book entry form,” meaning numbers were simply entered into the Treasury’s online money market fund (Treasury Direct). In effect, the money just moved from an online savings account to an online depository account, converting interest-bearing bonds into non-interest-bearing cash.
Where did the Treasury get the money to refinance this $3 billion bond issue at a lower interest rate? Whether it came from the private banking system or from the Federal Reserve, it was no doubt created out of thin air. As Federal Reserve Board Chairman Marriner Eccles testified before the House Banking and Currency Committee in 1935:
When the banks buy a billion dollars of Government bonds as they are offered . . . they actually create, by a bookkeeping entry, a billion dollars.
The US government can just as easily create this money by a bookkeeping entry itself. It can and it should, to avoid the interest charges that compound the national debt and make it unrepayable.
Quoting Thomas Edison again:
If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way.http://ellenbrown.com/…/how-obama-could-beat-the-debt-ceil…/
Comments by Justaluckyfool ( http://bit.ly/MlQWNs )
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Read and challenge:
Frederick Soddy writings, namely “The Role Of Money”
(Entire book as a free download…)http://archive.org/details/roleofmoney032861mbp ******************** “Believe nothing merely because you have been told it…But whatsoever,
after due examination and analysis,you find to be kind, conducive to the good,
the benefit,the welfare of all beings – that doctrine believe and cling to,and
take it as your guide.”- Buddha[Gautama Siddharta] (563 – 483 BC),