Let’s wipe out our $20 trillion national debt very quickly and ‘bigly’
President Trump said he is the “King of Debt” during the campaign and it’s time to step up to the plate. Big League.
Over the years I’ve heard of tax reform and lowering taxes and revenue neutral.
But I’ve never heard any politician say we have to raise revenue to pay down the debt.
Trump did say he could quickly wipe out the debt but didn’t say how. Because he never wants to show his hand.
So what will he do and how will he do it?
Creation of the in perpetuity annuity
Ok. We have about $20 trillion in bills, bonds and notes. With interest rates from zero to three percent. With maturities from one week to 30 years.
They are all going away and will all be replaced. It’s the repeal and replacement of our national debt. An idea we can all vote for!
Anyone, any entity, any country holding our debt will exchange it for new instruments where we, the United States, will not pay the underlying principal of the old debt.
You will receive in perpetuity an amount of money which is lower than you are receiving now. But this will be paid for 99 years and 9 months. So the present value of the new instrument will be much higher than whatever you are holding.
Essentially a century bond.
But it is not debt on our balance sheet.
It is expensed each year from general tax receipts.
So President Trump can eliminate the debt from our assets and liabilities to the income statement.
If said individual, pension plan, corporation or sovereign nation needs to cash out they can go to a company like J G Wentworth.
I have an annuity and I need cash now,
Call J G Wentworth 877 Cash Now!
Privatize the debt payment.
Now. Will this work?
Well. We are paying about $225 billion a year now. Maybe we can cut it to $125b.
You do the math. I had to sell my financial calculator during the recession.