Lets say you came up with 40 trillion in commodities from ... somewhere. Would it be feasible to pay off the debt? Or would the debt jump to 80 trillion to cover the difference between new money and old money?
My question was more hypothetical in the assumption that one instrument can swap the other. However, from a design perspective even assuming a swap instrument existed worth 40 trillion, would it work to eliminate the debt? This works with gold, silver, platinum, but i have no understanding of how this translates to debt currencies like the USD/EUR
from a design perspective even assuming a swap instrument existed worth 40 trillion, would it work to eliminate the debt?
I’m trying to understand what I think you’re saying. Make a sandwich, say it’s worth $40 trillion, and accept all US foreign debt in exchange for it. Then you choose to forgive/annul the debt and the government eats the sandwich. Something like that?
That's the general idea except with maybe instead of a sandwich we would use gold or something. Essentially my question is that whist the supply can expand, can the supply contract significantly without causing some kind of mass economic implosion, assuming we found an equivalent bandaid to help squash the pain?
You can avoid total collapse during currency contraction if you distribute a concurrent, replacement currency predicated on an economic system distinct from the one you’re replacing.
Announce a new form of US bond, virtually the same as Lincoln’s “greenback” during the Civil War, with a few exceptions. The new bond would look similar to the old dollar but would be paid as debt by the government for Real Work. For the sake of expedience, I will refer to this new dollar as a “Jackson.” Real Work is defined as producing something. Examples include roads, guns, airplanes, food, clothes, and rockets. The Jackson could not be used to repay loans. Remember the pictures of bills in the chapter on money? Printed on them is “This note is legal tender for all debts, public and private.” The Jackson would not apply to a loan as a debt. Only dollars would be allowed for that. This is convenient–and wouldn’t even change existing laws–because all loans are legally denominated in dollars. Similarly, Jacksons could not be used as collateral for loans. For the first two years, the value of the Jackson would be coupled to the US dollar at a 1:1 ratio. Once a sufficient supply of Jacksons begins circulating in the economy, the dollar and Jackson would be decoupled, like the dollar was from gold in 1971.
Now the great experiment occurs. Is debt-backed currency stronger than labor-backed currency? We know the answer. The dollar will inflate. In a very short time, 1 Jackson will buy $2, then $5, then $10, then $100, and then $1,000,000 as it exponentially increases. Everyone’s dollarized debt will inflate away and usury as a concept will become unprofitable. The best part is that this can be passed as a self-funding infrastructure bill. It could pass today and cost nothing except for the design and printing of the new Jackson bills.
You would have to freeze the interest, eliminate all non essential spending like the military, foreign aid and all unfunded entitlement programs and then commit to that for the next 40 years.
Right, the government likes the idea of being able to inflate the debt away with printing, but that relies on not having to refinance the debt at higher interest rates before they can accumulate enough hyperinflated currency to do so.
Incidentally, aren’t seven trillion dollars in debt needing to be refinanced this year?
a) Currency implies a moving current...those within represent the walking debt/dead aka livestock.
b) Debt implies a self imposed burden upon life...living implies each ones struggle to resist the temptation of burdening self with each others suggestions.
c) Nature sets each being within free (will of choice)...choosing to pay; sells oneself out to another.
I would pass a Constitutional amendment that (1) required a balanced budget plus a 15% surplus in peace time (as defined as the US Military took less than 1% of it's total population as casualties in combat last year) (2) print money to pay off the debt with treasuries paid at current value plus a little, (3) remove all taxes except a 10% tax on money leaving the country and a 1% tax on all transactions inside the country (4) enshrine precious metals non exclusively as currency forever (5) allow the government to spend the surplus (trust fund?) in war time, but mot more than 10% of the current surplus in a year (6) end entitlements
[ + ] Tallest_Skil
[ - ] Tallest_Skil 6 points 2 monthsMar 24, 2025 08:56:18 ago (+6/-0)
Kill all jews and the debt gets repaid.
[ + ] xmasskull
[ - ] xmasskull 1 point 2 monthsMar 24, 2025 22:58:44 ago (+1/-0)
[ + ] BeholdTheLight
[ - ] BeholdTheLight [op] 0 points 2 monthsMar 24, 2025 13:14:16 ago (+0/-0)
[ + ] Tallest_Skil
[ - ] Tallest_Skil 0 points 2 monthsMar 24, 2025 13:22:24 ago (+0/-0)
I’m trying to understand what I think you’re saying. Make a sandwich, say it’s worth $40 trillion, and accept all US foreign debt in exchange for it. Then you choose to forgive/annul the debt and the government eats the sandwich. Something like that?
[ + ] BeholdTheLight
[ - ] BeholdTheLight [op] 0 points 2 monthsMar 24, 2025 13:47:48 ago (+0/-0)
[ + ] Tallest_Skil
[ - ] Tallest_Skil 0 points 2 monthsMar 24, 2025 16:22:02 ago (+0/-0)
Announce a new form of US bond, virtually the same as Lincoln’s “greenback” during the Civil War, with a few exceptions. The new bond would look similar to the old dollar but would be paid as debt by the government for Real Work. For the sake of expedience, I will refer to this new dollar as a “Jackson.” Real Work is defined as producing something. Examples include roads, guns, airplanes, food, clothes, and rockets. The Jackson could not be used to repay loans. Remember the pictures of bills in the chapter on money? Printed on them is “This note is legal tender for all debts, public and private.” The Jackson would not apply to a loan as a debt. Only dollars would be allowed for that. This is convenient–and wouldn’t even change existing laws–because all loans are legally denominated in dollars. Similarly, Jacksons could not be used as collateral for loans. For the first two years, the value of the Jackson would be coupled to the US dollar at a 1:1 ratio. Once a sufficient supply of Jacksons begins circulating in the economy, the dollar and Jackson would be decoupled, like the dollar was from gold in 1971.
Now the great experiment occurs. Is debt-backed currency stronger than labor-backed currency? We know the answer. The dollar will inflate. In a very short time, 1 Jackson will buy $2, then $5, then $10, then $100, and then $1,000,000 as it exponentially increases. Everyone’s dollarized debt will inflate away and usury as a concept will become unprofitable. The best part is that this can be passed as a self-funding infrastructure bill. It could pass today and cost nothing except for the design and printing of the new Jackson bills.
[ + ] RMGoetbbels
[ - ] RMGoetbbels 2 points 2 monthsMar 24, 2025 09:54:24 ago (+2/-0)
[ + ] Drstrangestgov
[ - ] Drstrangestgov 1 point 2 monthsMar 24, 2025 12:11:27 ago (+1/-0)
[ + ] Tallest_Skil
[ - ] Tallest_Skil 2 points 2 monthsMar 24, 2025 13:23:27 ago (+2/-0)
Incidentally, aren’t seven trillion dollars in debt needing to be refinanced this year?
[ + ] ImplicationOverReason
[ - ] ImplicationOverReason 1 point 2 monthsMar 24, 2025 10:03:07 ago (+1/-0)
b) Debt implies a self imposed burden upon life...living implies each ones struggle to resist the temptation of burdening self with each others suggestions.
c) Nature sets each being within free (will of choice)...choosing to pay; sells oneself out to another.
[ + ] LiberalsAreMental
[ - ] LiberalsAreMental 0 points 2 monthsMar 24, 2025 19:03:11 ago (+0/-0)