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De Omnibus Dubitandum - Lux Veritas

Wednesday, April 18, 2018

Liquidating Federal Assets A Promising Tool for Ending the U.S. Debt Crisis



The national debt may be the biggest problem in decades that federal policymakers have failed to confront. Its importance is measurable not only in dollars—almost $20 trillion ($61,552 per capita)—but also in the grave threat it poses to the American financial system and therefore to the health and well-being of private businesses and households. A default on a scheduled federal debt payment, caused by the government’s lack of funds necessary to service its debt obligations, could spark a fire sale on U.S. Treasury securities, prompt a sharp fall in the value of the dollar, and launch a rapid “flight to quality” as investors and dollar holders flee to the perceived safety of other nations’ bonds and currencies—all culminating in a U.S. financial meltdown.

This worst-case scenario is not the only concern. Even if the Treasury has overdraft protection in the form of the Federal Reserve, the large debt servicing requirements exact a heavy toll on public services and economic growth.

This Executive Summary examines the potential for vastly improving the U.S. government’s fiscal position by using a method seldom utilized for the purposes of federal debt-reduction: the sale of federal assets..............To Read More....

My Take - Since this is a blast from the past article let's take a look at my Wednesday, January 30, 2013 " Get Out of Debt Card!", which I think actually outlines this issue better.  Please enjoy.

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