Anyone who has been paying attention to the ‘state of affairs’ wth our nation’s fiscal insanity is aware that we’re about to reach the 20 Trillion Dollar mark in the national debt. Make no mistake this ‘debt’ is considered to be ‘The People’s Debt’, not the politician’s debt, or the Govt’s debt. It’s supposedly underpinned by the tax payers.
This aggregate debt is the equivalent of a fiscal ‘Black Hole’ that’s going to swallow our prosperity. It is a monster growing at the pace of around $2.38 Billion per day. When interest rates begin to rise again (which they will), the annual debt service on this 20 Trillion is forecasted to reach close to 1 Trillion Dollars per year. Nobody, and we mean nobody is standing up to this hideous monster with sword in hand to attempt to slay it.
Sometimes the most complex problems have simple solutions We put forth the following solution to end this fiscal terror;
1. The US Treasury needs to take back it’s authority to issue the national currency 2. Then Issue new currency in the amount of $20 Trillion Dollars 3. Use this new currency to fully payoff the exiting $20 Tillion in Nat’l debt/IOUs This will leave us with the exact same amount of aggregate debt that we started with, BUT there will be NO annual debt service. Thus the annual budget will not include any line item for debt service on the national debt, and this savings ($1 Trillion Dollars per year) can then be used to amortize the remaining National Debt balance down. With this burden eliminated from the budget, combined with some true fiscal management, there would be NO reason to incur continuous budget deficits that require more debt issuance to fund the run-away spending train. The USA could actually be run like any bonafide business, and we can return to prosperity and innovation.
In the words of Victory Hugo “No Army Can Stop An Idea Whose Time Has Come”. This is an idea whose time has definitely come.