The national debt continues to rise

[75thru79]

I changed the title to Issues In Education to soothe any hurt Republican feelings.

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[Tidewater]

One of the posters had reassured Bamaro that the government checks would never bounce. Instead the federal government would simply print more money.
When lenders realizer that the federal government's strategy for dealing with the tsunami of debt is to print more money, they will stop buying T-bills unless the returns are enormous. If you had 1 million Reichsmarks at the dawn of Weimar hyperinflation, and you know you will be repaid in hyperinflated Reichsmarks, what kind of interest rate would you demand in order to buy a Weimar T-Bill?

When Congress declared that the Continental (paper currency) was acceptable as legal tender for all debts public and private, Dr. Witherspoon wrote that, "creditors were seen running away from their debtors, and debtors pursuing them in triumph and paying them without mercy." William Gouge, A Short History of Paper-Money and Banking. pg. 234. They had lent in real money (British Pounds) and were being repaid with virtually worthless paper money.

The same will apply in these United States if the government adopts a strategy of inflating the debt away.

 

[UAH]

One of the posters had reassured Bamaro that the government checks would never bounce. Instead the federal government would simply print more money.
When lenders realizer that the federal government's strategy for dealing with the tsunami of debt is to print more money, they will stop buying T-bills unless the returns are enormous. If you had 1 million Reichsmarks at the dawn of Weimar hyperinflation, and you know you will be repaid in hyperinflated Reichsmarks, what kind of interest rate would you demand in order to buy a Weimar T-Bill?

when Congress declared that the Continental (paper currency) was acceptable as legal tender for all debts public and private, Dr. Witherspoon wrote that, "creditors were seen running away from their debtors, and debtors pursuing them in triumph and paying them without mercy." William Gouge, A Short History of Paper-Money and Banking. pg. 234. They had lent in real money British Pounds) and were being repaid with virtually worthless paper money.

The same will apply in these United States if the government adopts a strategy of inflating the debt away.

Have you looked at the discussion underway to possibly revalue the US supply of Gold in Fort Knox and mark to market which would enable the Fed to print money equal to newly established price of Gold. Supposedly in this gambit the Fed who technically owns the Gold could transfer the funds to the US Treasury to pay down the debt. The hope would be to avert an immediate crisis then essentially wash rinse repeat.

There is no longer a significant market for US debt as Trump has alienated practically every major country who previously held our debt. The US Dollar value has plummeted. China and the Brics are actively purchasing Gold in an aim to replace the USD in non-US trading. BTW China is the largest Gold miner in the world extracting a claimed $30 Bil. per year.

There is nothing but bitter medicine ahead for the US as we topple from being an economic super power into a multi- polar world.

 

[Tidewater]

Have you looked at the discussion underway to possibly revalue the US supply of Gold in Fort Knox and mark to market which would enable the Fed to print money equal to newly established price of Gold. Supposedly in this gambit the Fed who technically owns the Gold could transfer the funds to the US Treasury to pay down the debt. The hope would be to avert an immediate crisis then essentially wash rinse repeat.

There is no longer a significant market for US debt as Trump has alienated practically every major country who previously held our debt. The US Dollar value has plummeted. China and the Brics are actively purchasing Gold in an aim to replace the USD in non-US trading. BTW China is the largest Gold miner in the world extracting a claimed $30 Bil. per year.

There is nothing but bitter medicine ahead for the US as we topple from being an economic super power into a multi- polar world.

Sadly true.
The first step in fixing the problem is to get on a glide path to a balanced budget. Stop spending more and more, or stop growing spending faster than we grow revenues.
If you find yourself in a hole, first, stop digging.