Downsize the Debt Act (Tabled)

[Deus Naturae]

First of all, this wouldn't cause a global collapse. No economist would agree with that. That's just nonsense.

Cranberry, this has nothing to do with private banks. The Fed currently holds a ton of securities issued by the Federal government, which the Federal government must make interest payments on. That makes zero sense. Why should the government pay interest to a government bank?

This isn't some goldbug wacko proposal (those will come later ), it's just common sense.

[Deus Naturae]

This is idiotic. The fact Senators TNF and Cassius are in agreement is proof enough.

They aren't though...

[Deus Naturae]

First of all, this wouldn't cause a global collapse. No economist would agree with that. That's just nonsense.

Cranberry, this has nothing to do with private banks. The Fed currently holds a ton of securities issued by the Federal government, which the Federal government must make interest payments on. That makes zero sense. Why should the government pay interest to a government bank?

This isn't some goldbug wacko proposal (those will come later ), it's just common sense.

Wouldn't selling them all at once cause unnecessary financial instability though. How much are we talking in securities and wouldn't it be better to do them in sections as opposed to all at once then?

We wouldn't be selling them; we'd be destroying them. There's simply no need for this debt to exist.

[Deus Naturae]

This is idiotic. The fact Senators TNF and Cassius are in agreement is proof enough.

Don't you have a Region to ruin?

This bill would do that for me, so I think I have a stake in this.

How so?

[Deus Naturae]

The money was printed that was paid to the Treasury for these securities. If that is the case, it could not only weaken the dollar but also cause inflation, because it sends a message we are monetizing the debt no?

The printed money has already been spent by the Federal government or private banks (when the Fed buys Treasuries, those groups are typically who it's buying them from). The debt has already been monetized, because that money is now in the economy. I would like to end this practice entirely, and ban the Fed from purchasing any Treasuries in the future, but I realize that would never pass. If we're going to monetize debt (which, again, is what already happens every time the Fed buys Treasuries) we might as well stop paying interest on it.