The Federal Reserve Bank has solved the national debt problem by way of the Feds bond buyback program. The national debt IS essentially these bonds, and the Fed is paying off the national debt when it buys the bonds back. It pays off the debt by simply declaring money into existence and then using it to pay off the bonds. The Fed did this to stabilize the US Treasury Bond market. It was sort of controversial at first because the old logic was that the U.S. government should spend less than they take in by tax revenue, and then use the money to pay off the debt as in pay off bonds. That was never really going to work, and it didnt even make sense, because the U.S. government made the Fed the richest bank in the world when they gave the Fed the right to declare trillions of dollars of money into existence - it should really by the U.S. government that should have that right. The Fed is sort of part of the government, because the government created it. In any case, the Fed is gradually paying off the national debt, instead of the U.S. government. People like Ted Cruz and other Tea Party Republicans are actually living in the past, because they are still working with the insane logic that the government itself should pay off the national debt, and that in order to do that the government should stop paying welfare and even discontinue Social Security, which would be a massive national disaster if the Tea Party ever got their way. In any case, the national debt problem has been solved. Do not worry about it any more. Vote Democrat instead of voting for these uninformed Republicans that are not even keeping up with the latest developments of the Federal Reserve. (While it is not the job of the ordinary citizen to understand the Fed bond buyback program, it IS the job of congress people who claim to be interested in paying off the national debt.) In the interest of being fair and balanced, if you have a net worth in excess of 50 million dollars, and you are feeling selfish, you probably should vote Republican because their policies might make you even richer. Yet if you are like most Americans and have a net worth under 50 million dollars, then it is in your own best interest to vote Democrat. foxbusiness/economy-policy/2014/10/29/fed-to-end-massive-bond-buying-program/
Posted on: Sat, 01 Nov 2014 19:05:52 +0000
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