Ron Paul's debt ceiling solution.

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ouchtouch
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Ron Paul's debt ceiling solution.

http://www.tnr.com/article/politics/91224/ron-paul-debt-ceiling-federal-reserve

Ron Paul is a genius!  But why stop at the Fed burning the treasury bonds it already owns?  Why not have the fed buy all the government's debt and burn it.  For that matter, what's to stop the Fed from buying every debt on the planet and burning it?  If the politicians give into the temptation to do this, the fiat money system will go poof overnight.

Edited by admin on 11/08/2014 - 06:06
rassillon
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If you look at the source

If you look at the source of the interview it is an article quoting RP and editorializing his comments. I doubt if either article is accurately representing RP viewpoints, it certainly doesn't sound like him. Maybe if we could get RP's in-context comments.

Dyhalto
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The article's gone. What's

The article's gone. What's the jist of it? A debt jubilee? Or is he telling the Fed to go pound sand?

The real solution is to just pay off the national debt with government issued bills. As you retire the debt, dollar-by-dollar, you proportionately raise reserve requirements on the banks to prevent the effects of inflation. It's very easy to do. The problem is gathering the political will to do it.

If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. ~ Thomas Edison

ouchtouch
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The article claimed that RP

The article claimed that RP advocated Congress ordering the Fed to burn/destroy the US treasury bonds it owns.

ouchtouch
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Here is a link that actually

Here is a link that actually quotes RP:

http://money.cnn.com/2011/06/28/news/economy/ron_paul_bankruptcy/index.htm

And another link to the TNR story:

http://www.dailypaul.com/169554/ron-paul-s-surprisingly-lucid-solution-to-the-debt-ceiling-impasse

Jake
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Dyhalto wrote: The real

Dyhalto wrote:

The real solution is to just pay off the national debt with government issued bills. As you retire the debt, dollar-by-dollar, you proportionately raise reserve requirements on the banks to prevent the effects of inflation. It's very easy to do. The problem is gathering the political will to do it.

If our nation can issue a dollar bond, it can issue a dollar bill. The element that makes the bond good makes the bill good. ~ Thomas Edison

yes---Greenbacks!---But you pointed out why there will never be greenback currency that can work. Politicians want to keep their jobs in office, as a result, they give free-stuff away to people for votes. The consequence is debt beyond what the society can absorb as the equity derived from real growth erodes. The result is a growing segment of the population that becomes dependent. Term limits don't work either as the next goon takes office and perpetuates the same insanity. 

The awful truth is that we must accept cycles of temporary prosperity followed by collapse and recovery--then new temporary prosperity again with a rinse and repeat cycle.

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