Friday, June 20, 2025

Interest rate follies

Opinions are like a-holes. Everybody has one. Here's mine. The opinion, that is.

 

Everything that Trump needs is in his own hands. Just print money without borrowing. The only difference is that it isn't backed by debt. What is so sacred about debt? The idea that debt will restrain government has already gone out the window. Indeed, debt is being used to repudiate debt. Debt implies interest payments, which become so onerous that the debt can never be repayed.


Something has to back the currency in order for people to have confidence in it. That will be the objection to such a strategy. Why should anybody have confidence in it now? The debt won't be paid. Maybe issuing currency won't solve the problem, but the current method isn't working either.


Issuing debt will be an end-run around the Fed. The Fed is abusing its power. If you have the gonads to do what is needed, you ( meaning Trump ) will issue the currency like Abe Lincoln did at the beginning of the Civil War.


Issuing Greenbacks might be overturned, as it was back then. However, if Trump ever did this, he should never back down as Lincoln did. Trump could tell Congress to stop him if they can, and just do it. Like a lot of things he COULD do, but won't. That's because he's afraid they'll call him a King. But they're going to do that anyway.



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