What is good for the goose is good for the gander.
If we will not print interest free currency then perhaps we can use interest to our advantage.
We live in a world where Harvard / Wharton graduate fucktards can destroy the banking system, the global economy, and the future of this country while not going to jail and holding the tax payer hostage for bailouts.
Two words:
CARRY TRADE
We the people have borrowed money from the future to lend to the banks.
The banks have the opportunity to borrow at low rates, buy higher yielding treasuries, and using the arbitrage proceeds to write down losses on the books.
In some instances this money is leveraged to purchase more bonds from say Japan in order to leverage the money once again. This allows for some players to buy speculative investments and make serious coin when their bets come out on top. On another note i think this is cause for much of our volatility….yet i digress.
The first thing we can do for the citizens is let them do the same. Let U.S. citizens borrow at 0-.25%. They can then purchase treasuries and the Fed can buy them back with interest paid.
This would generate money to relieve debt and help those with negative equity or upside down mortgages.
For those who have no debt…well good job and maybe you get a tax break to make it an even playing field.
Furthermore, America could slowly eat away at its debt through this process.
If the goose is going to use us…then why not use them. The banks could mange the program and make a vig. The Fed and its private banks who have skimmed off the backs of tax payers for 98 years could pay us a favor and forfeit some of that stolen money back to America.
Meanwhile, consumer and business sentiment would change; and the economy would pick up. Uncle Sam could collect more taxes and not have to kill what republicans call “socialistic” programs. Because no matter what you say programs like Fannie, Fredie, SS, and such have worked for many years until government and their corporate masters decided to steal and tinker with them. Couple this with some austerity and you have a realistic opportunity for a fresh start.
The only rule would be to insure citizens and governemnt do not incur more debt while trying to relieve what is on the books.
Any thoughts ?
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