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10 sats \ 5 replies \ @Undisciplined 7h \ parent \ on: Charted: U.S. National Debt, as a Percent of GDP (1900-2035P) econ
Until they get down to the couple of trillions dollars in actual specie.
Yeah, paying off the debt would necessitate a 90% contraction of the money supply. Although, the Treasury could always crank up the actual printer.
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53 sats \ 4 replies \ @freetx 7h
Heres your choices:
  • Do nothing and let hyperinflation take over
  • Default on debt and deal with resulting wars
  • Somehow try to "pay down debt" (big unknown) and deal with 90% deflationary collapse
  • Transition to bitcoin standard and forget about it
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49 sats \ 0 replies \ @Bell_curve 6h
we should be able to cut federal budget to fiscal year 2019, i.e. pre Covid spending levels
That should trim 2 trillion annually?
update: paying down debt is unnecessary as long as we don't default on our bond payments
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10 sats \ 2 replies \ @Undisciplined 7h
What happens to the holders of dollar denominated debt with the bitcoin plan? It seems like that's just a variant of one of the other three choices.
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51 sats \ 1 reply \ @freetx 7h
They will receive dollars that may not be worth much in 30 years.....they too should transition to bitcoin standard.
(btw, I just saw someone on twitter post a "BitBond" strategy that is clever. When bonds are sold, Treasury allocates 1% of funds raised into bitcoin and held in cold-storage. At maturity, Treasury pays back 99% fiat and the 1% BTC.....)
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35 sats \ 0 replies \ @Bell_curve 6h
The 2 biggest liabilities are Medicare and Social Security.
Eventually we have to privatize both. The other option is we pay everyone off with a lump sum (present value discount).
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