The biggest holder of US Debt if the Federal Reserve. Ron Paul has it right when he says, "Have the Federal Reserve simply cancel or forgive the 1.6 Trillion in Treasury Bonds it holds." The Fed holds the bonds, the Treasury pays the Fed interest and the Fed refunds the interest back to the Treasury anyway!
The Fed is a privately owned bank and it's owned by the Government. For all practical purposes the government owns the debt holdings so in other words it's borrowing from itself and has a huge amount of interest payments it must pay - TO ITSELF!
If the Fed were to sell the bonds it would turn a phony liability the government owes itself into one where the government owes REAL people. It's all a shell game and the sooner the American public wakes up to the reality of this, the sooner this phony crisis would end.
What would it hurt? No jobs lost, no one would get fired and we'd just shed ourselves of 1.6 Trillion of phony debt.
Will it happen? I can absolutely tell you it won't. It's too politically damaging, because it would show the unknowing public what a house of cards our monetary system is and there are those that would scream that "It'll shrink the country's monetary base." So what!
I'm just sayin....
I've been a member here for almost 5 years and haven't posted in some time...but this debt thing has really got me riled.