How to retire the national debt

[FireWalker]

Retire each existing Treasury bond, in exchange for a new monetary instrument called a "Federal Credit Receipt" (FCR). The FCR is essentially an IOU that is non-interest bearing.

This allows economic control over the bonds and where the value is directed. Rather than China selling $2 trillion in bonds, receiving dollars, and then spending them, the Fed & Treasury can decide what can be purchased and define the terms.

Example: Social Security can turn in some of their Treasury bonds for a Federal Credit Receipt. The FCR can be used to purchase a Texas Stock Market, with Fed oversight.

Inflation stays under control, no more debt service payments or interest, and allows more precise economic planning.

 

[Martinghoul]

Oh jeez...

 

[FireWalker]

Oh jeez...

It would work.

It's either that, or wait until the American population becomes too poor to pay back the bonds.

 

[Martinghoul]

It would work.

It's either that, or wait until the American population becomes too poor to pay back the bonds.

Are you a Muslim, out of curiosity? Such aversion to interest, is it a religious thing for you? You wanna replace all US treasuries w/ sukuk?

 

[FireWalker]

Are you a Muslim, out of curiosity? Such aversion to interest, is it a religious thing for you? You wanna replace all US treasuries w/ sukuk?

This has nothing to do with an "aversion to interest". It is viable plan for the financial predicament the world is in. The USD backed by bonds has created a large problem and either the USD collapses or it transitions to a different accounting mechanism.

EDIT: No, I am not Muslim. I am suggesting a monetary mechanism that can transition from bonds and control where the value is directed. Example: If China sells $5 trillion, they receive USD that can be spent freely. That is a difficult thing to manage from an inflation perspective.

 

[FireWalker]

It's a financial and currency war. The above puts the USD in the best defensive position.

 

[Martinghoul]

This has nothing to do with an "aversion to interest". It is viable plan for the financial predicament the world is in. The USD backed by bonds has created a large problem and either the USD collapses or it transitions to a different accounting mechanism.

EDIT: No, I am not Muslim. I am suggesting a monetary mechanism that can transition from bonds and control where the value is directed. Example: If China sells $5 trillion, they receive USD that can be spent freely. That is a difficult thing to manage from an inflation perspective.

Well, good luck with your creative planning, mate...