- Aug 19, 2008
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IF the Repugs really are dumb enough to refuse to raise the debt ceiling, The President & Treasury secretary may be able to dampen the effects of the default this way:
Since the government collects 40% of expenditures in revenues each month, the government should pay 40% of it's debts to everyone it owes money to in cash, then pay the remaining 60% in low interest 2-year transferable government bonds.
This way nobody will get cut off completely, the bonds can be sold, and paybacks are delayed until the next Presidential cycle. Let's see the GOP candidates say that they'll refuse to honor them!
Of course they'll still be a major economic collapse...they stock market will drop like a rock and the very credibilty of U.S. currency wil come into question, but it'd make the whole fiasco a lot more survivable for millions of Americans.
Since the government collects 40% of expenditures in revenues each month, the government should pay 40% of it's debts to everyone it owes money to in cash, then pay the remaining 60% in low interest 2-year transferable government bonds.
This way nobody will get cut off completely, the bonds can be sold, and paybacks are delayed until the next Presidential cycle. Let's see the GOP candidates say that they'll refuse to honor them!
Of course they'll still be a major economic collapse...they stock market will drop like a rock and the very credibilty of U.S. currency wil come into question, but it'd make the whole fiasco a lot more survivable for millions of Americans.