Rustic23
Thinks s/he gets paid by the post
In this Forbes article,
Who Owns The Most U.S. Debt? - Forbes
they make the statement below:
" Social Security owns about 16% of the debt followed by other federal government entities (13%), and the Federal Reserve (12%)."
This amounts to 41% of the U.S. Debt.
Now Economics, especially Macro, is not one of my favorite subjects, I would like to pose the following questions.
What happens If the Federal Reserve just forgives the US debt?
On the SS side, yea the debt may be in the form of bonds, but in reality it all does not come due at once. Could the Government play with this?
Same thing for the other 13% owed to 'other federal government entities'. The governments left hand owes it right. So does it really have to pay it?
If we have an increase in interest rates and the government seems to be lending to itself, couldn't it just lend to itself at a lower rate?
Let's see if we can keep politics out of this. I just wondering what happens if the government bifurcates it's debt to debt owed to foreign countries and direct debt to people from debt owed to itself. My main thrust when thinking of this was the Fed. It seems like the could just forgive it's portion.
Who Owns The Most U.S. Debt? - Forbes
they make the statement below:
" Social Security owns about 16% of the debt followed by other federal government entities (13%), and the Federal Reserve (12%)."
This amounts to 41% of the U.S. Debt.
Now Economics, especially Macro, is not one of my favorite subjects, I would like to pose the following questions.
What happens If the Federal Reserve just forgives the US debt?
On the SS side, yea the debt may be in the form of bonds, but in reality it all does not come due at once. Could the Government play with this?
Same thing for the other 13% owed to 'other federal government entities'. The governments left hand owes it right. So does it really have to pay it?
If we have an increase in interest rates and the government seems to be lending to itself, couldn't it just lend to itself at a lower rate?
Let's see if we can keep politics out of this. I just wondering what happens if the government bifurcates it's debt to debt owed to foreign countries and direct debt to people from debt owed to itself. My main thrust when thinking of this was the Fed. It seems like the could just forgive it's portion.