FED: Rep. Paul introduces bill to cancel $1.6T in debt held by Federal Reserve

[Zippyjuan]

On the other hand, perhaps we want the Fed to hold more of our debt? Hear this out- I know this will not agree with everybody (since when did I agree with everybody anyways though!)- thinking radically here. It is true that like any other holder of US debt, the Fed is paid the interest due on the Treasuries. But at the end of the year, they give back that interest to the US Treasury along with all of the other money they make during the year- less expenses. This lowers the net amount of money the government has to pay out in the form of interest on the debt. That is money NOT going to China or Japan or the other holders of US debt.

Now granted, some would argue that if the Fed is buying these securities that they are putting more money out into the economy. True. The Fed buys the securities from the open market- so the Treasuries were already sold to the public. The Fed buying gives these investors more money to invest into other thing then like companies who can then in turn put that money into increasing productivity and thus jobs. It would mean less crowding out of debt from US government borrowing as well. Just some thoughts.

Rip away at it!

 

[Steven Douglas]

On the other hand, perhaps we want the Fed to hold more of our debt? Hear this out- I know this will not agree with everybody (since when did I agree with everybody anyways though!)- thinking radically here. It is true that like any other holder of US debt, the Fed is paid the interest due on the Treasuries. But at the end of the year, they give back that interest to the US Treasury along with all of the other money they make during the year- less expenses. This lowers the net amount of money the government has to pay out in the form of interest on the debt. That is money NOT going to China or Japan or the other holders of US debt.

Now granted, some would argue that if the Fed is buying these securities that they are putting more money out into the economy. True. The Fed buys the securities from the open market- so the Treasuries were already sold to the public. The Fed buying gives these investors more money to invest into other thing then like companies who can then in turn put that money into increasing productivity and thus jobs. It would mean less crowding out of debt from US government borrowing as well. Just some thoughts.

Rip away at it!

I have a better idea - just cut out the central bank middle-man altogether and make government the issuing bank, since it, not us, is the recipient of interest payments. At least it would be more honest. The government is effectively the bank-by-proxy anyway, and the money creation is nothing but a hidden tax on currency holders, which already goes to support commerce, warfare and welfare. Wouldn't that be just "stimulating" to everyone - so long as by "everyone", we mean the most direct first recipients.

The currency pool itself is taxed and loaned/given out to others. The real parties of interest are the present and future currency holders, who are never even named, let alone identified, as parties of interest. So not only is the value that is stolen from them NEVER directly returned to them - in many cases they have to pay it back! Cancelling the so-called "debt" is no different, in essence, than saying that that the money was simply spent, rather than "loaned", into circulation. Nothing to "pay back", but also no deflation, as money subsequently taken out of circulation - money that is now depended upon through counter-party claims, but never should have been there to begin with.

In our case it is a fake debt anyway. Not just odius - it's far worse than that. In this case we are responsible for making payments on loans that were made in our name, and on our behalf, using money that was stolen from us!

So no, for me it is not a question of who we "want to hold more of our debt". How about we don't go into debt in the first place, but if we do go into debt, how about the money actually comes from a real source, and not ROBBED from currency holders through counterfeiting?

 

[Athan]

Interest paid to the fed is nearly entirely given back to the treasury. Essentially you are saying the government should be able to print money and spend it.

He wants to wipe the number off the books.

 

[Zippyjuan]

In terms of interst costs, that saves the government very little. Would that encourage Congress to go into debt further? Lowering our outstanding debt could free us up to go out and borrow more then since our GDP to debt ratio would be much smaller. "Hey- we can go on another spending splurge now! We can afford it and it will stimulate the economy and get us all re-elected!"

 

[Seraphim]

Of all the reasons in the world...this is what you come up with?

In terms of interst costs, that saves the government very little. Would that encourage Congress to go into debt further? Lowering our outstanding debt could free us up to go out and borrow more then since our GDP to debt ratio would be much smaller. "Hey- we can go on another spending splurge now! We can afford it and it will stimulate the economy and get us all re-elected!"

 

[Zippyjuan]

Didn't say I agree with doing that but it is a possible reaction.

 

[rockerrockstar]

When will this be national news or brought up in a debate? You would think this would score major points with the American people. Probably have media blackout on this issue.