What happens today?
- The US government takes in a smaller amount of money in taxes.
- The US government spends a lot more money.
- The US government makes up the difference by selling treasuries (going more and more in debt).
- Lately the Federal Reserve has been buying more and more of those treasuries.
This problem can be easily taken care of by raising taxes substantially on some person or institution that can easily pay those taxes.
How about the Federal Reserve? So:
- The US congress puts a humonguous tax on the Federal Reserve (eliminating the deficits).
- The Federal Reserve prints up the money and gives it to the US government (not hard for them to do at all).
- And... POOF!!! NO MORE DEFICIT! DO IT ENOUGH SO THAT THE US GOVERNMENT CAN BUY BACK ITS TREASURIES AND POOF!!! NO MORE US GOVERNMENT DEBT AT ALL!!!
Seems much more convenient than having the deficits continue, having the US sell more and more treasuries and having the Federal Reserve buy more and more treasuries. Nobody has to feel guilty about those deficits any more!
What do you think?