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Originally Posted by Rockter
Whatever be the landing, whenever it happens, tell me, when is any of this National Debt going to be paid back?
Every day that goes by, it worsens.
Both parties do it, endlessly, but neither seems to pay any of it back.
When are they going to?
In a year's time, if I looked at the debt figure it would still be rising. Now that can only lead to insolvency eventually, or a living standard so depressed by debt repayments, that the people will lose incentive to better themselves.
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It can't be paid back, it's beyond that now. They will have to debase the money supply, monetize the debt. The way this works is simple, the Fed prints money and buys U.S. treasuries, and then simply destroys the treasuries. They convert debt into currency, like magic.
They told you all about it, didn't you get the memo ?
Quote:
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Originally Posted by U.S. Treasury & FED
September 17, 2008
HP-1144
Treasury Announces Supplementary Financing Program
Washington- The Federal Reserve has announced a series of lending and liquidity initiatives during the past several quarters intended to address heightened liquidity pressures in the financial market, including enhancing its liquidity facilities this week. To manage the balance sheet impact of these efforts, the Federal Reserve has taken a number of actions, including redeeming and selling securities from the System Open Market Account portfolio.
The Treasury Department announced today the initiation of a temporary Supplementary Financing Program at the request of the Federal Reserve. The program will consist of a series of Treasury bills, apart from Treasury’s current borrowing program, which will provide cash for use in the Federal Reserve initiatives.
Announcements of and participation in auctions conducted under the Supplementary Financing Program will be governed by existing Treasury auction rules. Treasury will provide as much advance notification as possible regarding the timing, size, and maturity of any bills auctioned for Supplementary Financing Program purposes.
HP-1144: Treasury Announces Supplementary Financing Program |