I am not seeing the difference between stopping payment and destroying the bonds.
I am not seeing the difference between stopping payment and destroying the bonds.
Well, from the research I've done, if the bonds are literally destroyed, they'll be missing from the Feds balance sheet.
Allowing the bonds to exist, but simply stopping payments, will allow the Feds balance sheet to stay balanced.
But the thing I find most intriguing is the $1.6 trillion dollars worth of unbonded FRNs if the US bonds were actually destroyed.
What is an unbonded Federal reserve note?
Last edited by Rock Anthony; 07-08-11 at 05:37 AM.
I wonder if such words would be spoken on the House floor absent Ron Paul's rise in popularity.House Budget Committee Chairman Paul Ryan:
“We cannot keep spending money we do not have," said Ryan. "Forty-two cents out of every dollar coming out of Washington is borrowed money, 47 percent of it from other countries, China number 1 [most of all]. Mr. Speaker, you cannot have sovereignty, self-determination as a country if we are relying on other governments to cash-flow [finance] half of our deficit.”
http://en.wikipedia.org/wiki/Historical_materialism
Commerce first, political status second....