Debt Bonds
We all know it’s bad to try and pay
off debt with more debt. This is the
unfortunate plight of the United
States with the national debt at 15 trillion
and growing. So I asked my self, is
there a way to replace our foreign debt to countries like China, our bank debt
to banks like AIG and the debt we owe to Social Security with something more manageable. Then it hit me, savings bonds that are used
to pay off all other debt and make the Federal government owe only the American
people.
Savings bonds, for those who don’t
know, are loans to the Federal government with a controlled interest rate. This means they can only gain a certain
amount of interest beyond their original value.
A stark contrast to the near perpetual interest we owe to countries like
China . So I am calling for the creation of savings
bonds that are used exclusively to pay off all our foreign debt, then the debt
we owe to banks and other financial institutions and finally the money the
government owes to itself. I dub them
debt bonds.
The debt bonds will only be
accessible to American citizens so as to prevent future foreign and other forms
of national debt. Essentially it
replaces all debt with debt that is owed exclusively to the American people and
is more manageable due to interest rates being capped once the bond reaches a
certain value over the original loan. To
prevent the Federal government from owing too much money to any individual
citizen and thus gaining too much influence in America ’s politics people will only
be able to take out a certain number of debt bonds per year. On top of that the maximum value of each bond
will be limited to $100. This takes care
of millionaires and the like who can take out hundreds of bonds at a time and
makes the peoples influence on America ’s
debt more equitable. Overall, debt bonds
makes the United States
owe the American people and no one else.
To speed up the process of replacing
our current U.S. debt to the
likes of China
or AIG, a sinking fund can be created. A
sinking fund is used to pay off the debt exclusively and has a source of funds
from the general revenue of the U.S.
In this case, that revenue can come from
a certain percentage of what the Federal government gets from our taxes or
revenue from such things as the post office.
The debt bonds supplement the fund to speed up paying off foreign
debt. Portions of the debt will actually
be paid off and the rest replaced by debt owed to American citizens resulting
in a more fiscally sound and possibly easier to pay off national debt.
I am sure we can agree that we hate
the idea of owing China
money. We hate the idea of owing banks
like AIG, who also got bailout money at the start of the financial crises back
in 2008-2009. No one wants more money
being borrowed from Social Security or Medicare anymore. Most of all, however, we hate the idea of our
national debt causing the Federal government, our government, to have divided
loyalties to its creditors and us, the American people. So let us make the national debt the
citizens’ debt, and have the Federal government’s loyalty return to us and us
alone.