Paulie
Diamond Member
- May 19, 2007
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7 Trillion Dollars = $7,000,000,000,000 times 1% = $70,000,000,000 = 70 Billion Dollars.
7 Trillion Dollars = $7,000,000,000,000 times 0% = $0.00 = Nothing = Zip = Nada = Nothing!
Now, Dufus, what happens if we have the FED buy that 7 Trilllion that we are paying interest on? That is right, we are paying ZERO Interest on 14 Trillion Dollars.
If you are paying ZERO interest how long before you can not afford to make the interest payments when you owe nothing?
Now, if the President orders the FED to destroy all of those bonds, how much money do we owe to the FED? If we owe nothing, do we have to pay it back? The FED got the money out of nowhere and to nowhere the debt can be cast.
Do you not understand Treasury rates? When the Federal Reserve buys treasuries, the government owes them the effective rate of the particular type of treasury bought. I don't know where you're getting this 0% crap from. They're not lending money to the government for free.
And I also don't know where you get this bat shit crazy idea that they would ever cancel any debt.