The 77% (of the economy) number must refer to the publicly held portion of the debt; i.e., of around $15T. In any event, this debt is already beyond what might be handled by increasing revenue or cutting spending. We’ve no choice but to start “monetizing” it. Here’s the plan: The Fed has some $4T that it wants to unwind. Rather than selling it to public investors, use it to cash in $4T of maturing bonds. (They mature and roll-over at the rate of about $5T annually.) Do it over four years, or even eight, to minimize market disruption. Also to not cause havoc, announce the plan six months in advance.
Half of that $4T will wind up in our internal economy, half beyond our borders. Our economy can handle $250–500B of new money without inflation. Of course, inflation is monitored closely and the program can be slowed or suspended if an inflation trend develops.
Next: Each year’s deficit to be handled by the Fed, at no interest. Yes, we’ll simply print the money we need. Note the word “need”.
Finally: Congress must begin to start living closer to our means. Spending is currently more than $3.6T annually, with revenue of $3.0T or so. Rather than pull more money out of our free enterprise economy, that gap should be closed purely with spending cuts.
The government buys pennies — $20M per year. The BBG (Voice of America and its sister programs) $750M, much of which has become internal propaganda that should be eliminated, while much of the rest duplicates the work of Associate Press, CNN, Fox and others that should be contracted out. Many NGOs and others have identified thousands upon thousands of such needless wasted efforts that are really nothing more than government jobs programs that contribute nothing to our economic well being, and in fact hinder our economic growth.
To repeat: We’re beyond the point of dealing with our obscene and growing national debt by increasing revenue and cutting spending, the decades and decades of crying out and wishing in vain.
If someone has a better solution, I’m listening.