if the Federal reserve "Forgave" the US debt that it owns or for that matter, it buys up a bunch of China debt before this would happen? I was asked this question by friend and my initial response, bad....really bad as everyone realizes the money is worthless, but there would be no more debt. Any thoughts?
Since debts are assets which can be traded, it doesn't make sense for the debtor to become generous enough to forgive the burden. Even the First Bank of the United States, also a private bank, was formed with finances from the U.S. Government and never repaid. It's always been this way. The only way the Federal Government will become debt free is for Congress to once again be permitted to create money with zero interest attached, as it was like under Lincoln. They must also downsize (I say about 95%) and return to Constitutionally legitimate governance instead of being a corporate cartel syndicate and global police force. Essentially, it won't happen, not without a revolution.
Since we are basically selling debt at almost nothing, is there really a difference? I am interested n the financial ramifications from the global bond market.
Did ANY of you Folks, catch the 60 Minute show on Chinese Residential RealEstate, last night? If you think our Housing Bubble was BIG, you should see THEIR looming Residential RealEstate Bubble. IT is Gigantic, Still Growing, and soon to come crashing DOWN.... They have MANY, WHOLE Cities, built, sold, and unOccupied, that can hold Millions of People... That is RIGHT, WHOLE Cities, with NO ONE living in them, but housing for MILLIONS of Residents..... Period.... When this Bubble bursts, like the Ponzi Scheme, it is, look for the Chinese People, to Riot in the Streets, and take down their own Government... This is THAT BIG....
