debt is power. How much outstanding foreign debt there is in U$Dollars highly affects the value of the dollar currency itself – fun fact: biggest holder of US-State-Debt is China.
US China trade deficit:
No wonder Trump does not want to continue to play “globalization free trade superpower”, USA and basically all of “The West” lost this game to China.
“The national debt of the United States is the debt, or unpaid borrowed funds, carried by the federal government of the United States, which is measured as the face value of the currently outstanding Treasury securities that have been issued by the Treasury and other federal government agencies.
As of October 2018, foreigners owned $6.2 trillion of U.S. debt, or approximately 39% of the debt held by the public of $16.1 trillion and 28 percent of the total debt of $21.8 trillion.
how to reduce Americas deficit by 24%
“Just as a thought experiment, I took the 400 richest Americans and 10 richest US companies and… “borrowed…” most of their wealth.
I left each person with a net worth of $1.5 billion (US) and each company with $2.5 billion.
I “took” $2.75 trillion from these 410 entities.
Then I used that money to pay off:
- all the student loans ($1 trillion)
- all the auto loans ($770 billion)
- all the credit cards ($670 billion).
This left $310 billion in my little pot of money.
After spending this on mortgages, the use had about $7.7 trillion in mortgages remaining plus about $870 billion in other debt, or about $8.6 trillion total consumer debt.
This means that robbing 400 individuals and 10 companies down to a modest level of wealth was enough to pay off 24% of all US consumer debt.
410 entities meant no more credit card, student loan, or car loan debts.
And it left those 410 entities with more than enough cash on hand to survive any reasonable business or personal goals.
Can you imagine how much of an impact this would have on the US economy?
Can you imagine what a lifeline this could be to millions of people as they suddenly are out of debt, free and clear?
Or out of enough debt that they can actually make a dent in their other bills?
I’m not suggesting we do this, but it’s mind-blowing to think that 410 entities could do that and still be insanely wealthy after the fact.
410 entities hold $3.375 trillion in net worth vs the $11.3 trillion in consumer debt.”
“Of course there is a technical way to do that, in fact, there are several.
One would be to just take the investments in lieu of tax payment and hand them over, unchanged, to the owners of the debt, thereby nullifiying the debt.
One could also just print the required money, hand it out not to the banks as usual, but to the people, have them use it to pay off the debt, and then tax any oncome the super-rich might derive from their investment and burn that money over time until the amount of money in circulation has been stabilized.
Etc. pp. Of course there ware various ways, which have various side effects. Considering that the side effect of not doing anything is disastrous, they are all better than the status quo.”