Thursday, August 4, 2011
Ron Paul introduces bill to cancel $1.6 trillion debt held by the Fed
The first good idea EVER from Ron Paul. The Fed could essentially rip up its holdings of Treasuries and the US debt would be lowered by $1.6 trillion. This is pretty much what Rand is proposing. It's a good idea and it shows the fallacy of the debt and how easy it is to “pay it back.”
The Fed is the largest single holder of U.S. bonds and notes. The Treasury pays interest to the Fed on those holdings. So the government (the Treasury) is paying interest to an agency of the government (the Fed). Then the Fed pays the Treasury back that interest. How idiotic is this???
Why are we holding ourselves hostage to debt terrorists and the rating agencies when it all can be solved so easily? Crazy!!
Here is the article on Ron Paul's proposal.