Martin Do you mean only on a federal level? Would people’s home mortgage be wiped away? I would think not but if it’s a true reset who knows Regards,
ANSWER: The ONLY debt is Federal, not private and not state or muni. They will trade as is on the market. This will end the subsidies for inefficient munis and any tax-free status would be limited to state levels.
This will eliminate federal consumption of money and free up money for the private sector. The Feds compete against the private sector for money and they have done a fantastic job of making people believe gov’t debt is secure when in fact no government ever pays off its debt. Truly a great con-job. You pay MORE in interest rates because they get the best rate under the false pretense government debt is the best when in fact historically it is always the worst. How many haircuts have already been imposed in Europe on sovereign debt of Greece and others? One giant lie that will end up very badly.
We either deal with the problem, or suffer the consequences. There is NO ALTERNATIVE. Everyone’s pension is gone or we address the problem realistically. We need a debt-equity swap restructuring.