Congress has to declare some portion of its debt a total loss, and contract with the Fed to make it so over some time period. The Fed, in return, gets a contract renewal and complete independence for the fixed regime period.
The currency will not weaken for long, a more independent Fed makes a strong currency. Just witness the idiocy of Congress paying 15% ten year rates in the 80s. That is a strong currency.
Taxpayers paying that rate, and re-electing Reagan were about as nutty as one could get. But we did and we rolled the debt (three times). Reagan is now only costing us 3%, and that is rolling over. But nutty taxpayers willing to shovel 5% of household income into government interest expense is as nutty as we get.
Reagan had the Alzheimer's, and nutty voters were watching sitcoms. The voters are still nutty, the presidents still ignorant, and that interest charge is not being all paid, folks. We will be driven to deflation in the attempt, the kids will go nuts with deflation. What are their choices?
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