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Readers Respond: What's the Best Way to Reduce the National Debt?

Responses: 416

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Replace securities at Soc Sec. with $

There is a way the Treasury can buy back the T-bills at the Soc. Security Trust Fund without going ultimately into debt. Treasury just needs to issue securities for enough money to redeem the T-bills. Private banks buy them at public auction. The Treasury takes the money and buys back the bonds. It shouldn't cause inflation because the Soc. Security Trust Fund will only have to supplement FICA tax revenues when benefits are paid. This will be gradual over the years. As for the debt to the banks, the Fed will come along and "buy" those securities with fiat money created out of thin air. The debt obligation to the banks is redeemed for the government. I know this sounds crazy but this shows what our fiat money system can do. Money is tokens of debt obligations in units of account (e.g. dollars) between parties in the economy. Study Modern Monetary Theory (MMT).
—Guest MMTdebtkiller

There is no national debt at the Fed

There is no national debt at the Fed. When Congress deficit spends, Treasury has to get money to cover deficit. For this it issues securities which are bought by banks at public auction. At this point it looks like a govt. debt, but wait: Then the Federal Reserve (Fed) comes abd obtains these securities from the banks in return for fiat money created out of thin air. The act of creating money is a govt. act and the Fed is a govt. agency. This means the Fed's act of "buying" the securities from the banks redeems the debt of the govt. to the private banks. The Fed and Treasury are both govt. agencies and there is one govt. The govt. doesn't owe itself. So, there is no debt. As for foreign and private buyers of US bonds, they do not fund Congress's spending. The bonds are like bank CD's at the Fed. When bond owners want payment, the Fed just creates their money and pays back principal plus interest. No real debt problem here. We have fiat money. Study MMT.
—Guest MMTdebtkiller

What's the Best Way to Reduce the Nation

A U.S. News Weekly article dated November 19, 2012 states, “In 2012, the U.S. will spend around $220 billion in net interest on its debt, according to the Congressional Budget Office….” You state that “Interest on the debt was $454 billion in Fiscal Year 2011, the highest ever.” This is puzzling. Do one of you have your figures wrong or is the interest rate go down that much in 2011 from 2012?
—Guest Samuel Helm

SSi, medicaid and medicare cuts

I feel the ssi, medicaid, medicare and unemployement should be left alone. I have worked since I was 15 years old and I feel it is not fair to the ones who worked and paid there taxes for these programs. Make congress, the government general take a pay cut. Make them pay taxes. When they retire it is not fair that they will not have to worry about money, because the government will continue to pay them even though they never paid taxes. The government is what got us in this mess, so they should cover the defecit with their incomes by reduction of pay and make them pay taxes as well.
—Guest Joy

The best cure

The National Debt Relief Amendment www.restoringfreedom.org
—Guest Senator Curtis Olafson

The Collapse of the U.S.A. Dollar Bill!!

The Federal Debt of over $16,000,000,000,000 Trillion Dollars is an "Astronomical Debt Crisis Depression awaiting the United States of America in 2013 A.D. and beyond. Bailouts are useless and only increase this Federal Debt Disaster further. There is "NO" escapes U.S.A. The U.S.A. Empire is expected to Collapse in the early Quarter of 2013 which will "lead to Civil War between the American People with NO jobs and NO Food, for the money in a Depression style 1929 Black Friday Stock Exchange is the destiny of over $18,000,000,000,000 Trillion Dollar Debt Crisis Disaster Depression U.S.A. My predictions were for U.S.A.-Debt Depression Dollar Collaps by December 21st(Winter Solstice Astronomy.)2012 A.D. Its seems that the U.S.A. is performing Miracles since its over $16,000,000,000,000 Trillion Dollar Debt Disaster Depression Astronomical Debt would collapse any Civilization or Empires such as the U.S.A. Its is a matter of Time for $20,000,000,000,000 Trillion dollars Guarantteed Collapse
—Guest Jules7892

Inaccurate Statement in Article

This article isn't quite right. The statement "The U.S. debt is the largest in the world," isn't accurate. It is a fact that both the debt (as a % of their GDP) of Japan and the Eurozone is currently higher than the U.S. This needs to be corrected if accuracy is of any importance to the writer or publisher of this piece.
—Guest Erinn J-L

we are OK

Best way to rid the national debt is to start by knowing what it really is: the CONVERSION of all deficit through the years into the sale of treasury bonds held by the bond holders. IT'S NOT our debt; it's the debt owed the bond holders. As a sovereign country, the USA can meet any obligation because it can electronically-legally create all the money it needs at any given time. Those bond holders will always get their money whenever they want it. It's not between the USA and the citizens of the USA. Its between the USA treasury and the bondholders who never need fear any loss since the USA is sovereign monetarily, unlike the Europeans who are not sovereign and cannot save themselves from the debt bomb hanging over their head. They made the decision to forfeit their sovereignty; now as non-sovereignties they are stuck in the mud big time. We here in the USA have NO national deficit-debt problem. Many economists and pols don't understand this. Read Modern Monetary Theory, google it!!
—victorMarcucci

Fed debt

The difference between expenses and income is taken by the wealthy 1%. Cancel non foreign interest payments (there is NO WHERE in the world the wealthy could safely send their money). There is NO other mathematical way to solve the debt! NO WAY BUT CANCEL INTEREST FOR THE OUTRAGEOUSLY WEALTHY.
—Guest Eldon stromberg PhD STD

Debt issues... pfft thats the least

you even wonder why the human race is stuck at a standstill in the evolutionary chain it all comes from one source and thats money(wealth ,greed,superiority) the three contributing facts to each and every war or small fight that takes place in this world these days... weather it be someone holding you at gunpoint for all the cash u got on you to a schoolyard bully stealing ur lunch money it doesn't matter how serious, the fact is both acts where fueled by the same need for money regardless of what it was used for good or bad it isn't always the bad tho there are ways that money negatively effects the progress of the human race the fact that in the US you need to pay money so that a you can see a doctor what in that sentence sounds wrong to you is it the part where you need wealth to keep yourself healthy/avoid death this world today is so sick and twisted is sad that children have to grow up living in a world with you people in it people that think of money before the lives of ur own
—Guest Idiots

—LauraLee51 uhh lottery ??

just thought you would like to know the lottery is a stupid people tax with a extremely low ratio of payouts sorry to burst your bubble the the money you win is the money that people have already payed so your winning your own money back ....
—Guest Idiots

Correction

You were incorrect about one important part. " The next largest part (21%) is held by other governmental entities, like the Federal Reserve and state and local governments." The Federal Reserve is a private for-profit banking institutiin with majority shares reportedly owned by overseas investors. I say reportedly because we cannot know who owns the Fed due to restrictions in the Federal Reserve Act of 1913.
—Guest Charles

Google MMT

There is a growing movement to understand modern money mechanics in opposition to how we were taught about money. We were taught wrong. A soveriegn nation that issues its own currency, like the USA, is not constrained in its ability to pay its bills and can never go broke. A soveriegn budget is not like a family or business budget. Soveriegn issuers of currency have unlimited ability to produce their own currency. A nonsoveriegn (household/firm) entity is constrained and must borrow. A soveriegn issuer creates currency digitally-electronically and legally. The only real worry is inflation, and in a modern economy there is no reason to fear inflation; supply capacity is way ahead of demand. We really don't know where the breaking point is or if there is one at all. I strongly recommend going to the internet to find out more on the topic of MMT, modern money theory, L. Randall Wray.
—victorMarcucci

Mrs

Are you sure that you really want my views about the US National Debt ? Ok . This is a problem that any second grade kid can resolve . Because , most of the second grade students know how to do a subtraction . If someone spends $ 5 Trillion in just 4 years and you want to reduce this deficit, you have to divide 5 by 4 and the answer is 1.25 . Therefore , if you are serious about reducing this deficit ,you just have to cut 1.25 Trillion dollars each year for the next 4 years . Don't you see how simple it is ?
—Guest Tob Naurah

Natl. Debt

I believe if ALL of the excessuve spending on stuff not needed for the office of any Senate,congressman/woman,penagon,presidents office,and excessive trips,and ALL loopholes closed, Ads,Tv programs,excessive use of fuel and entertainment, be cut so the debt comes down and stop taking it away from the military and retired and medicare and medcade, limit the amt. of time a person can draw on welfare while looking for a job.. cut out Obamacare so people can afford to hire personnel. Looks to me like its a Govt. problem not ours!!!!
—Guest J Hintzke

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What's the Best Way to Reduce the National Debt?

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