Sometime in the next 24 hours we will be switching European Tribune over to a new layout. This will involve a little downtime and no doubt some teething troubles. Do not adjust your set. - Colman

Debts that have not been incurred yet...

Social Security, Medicare, Federal Retirement payments, etc. are debts which HAVE been incurred, not all of which are currently due. By minting a number of coins, which do not yet need to be deposited, all question of the ability to meet these obligations are answered.

But what would all the rich people who get interest for funding Govt. debt do if Obama simply paid them all off?

Perhaps they and their bought and paid for representatives in Congress should turn their 'minds' to that issue. It would be a 'Put up or shut up!' statement.


the importance of managing inflation expectations

But I believe that paying off the national debt would constitute a profound contraction of the money supply and thus deflationary. Federal stimulus would be what would be needed. Else Congress could behave sufficiently responsibly that they could be entrusted with a national debt in a time of historically low interest rates. Plus, it is about time some of these 'expectation' theories be put to the test.

Hence my very specific proposal to fund a very specific and known past expenditure

That would constitute paying off over two thirds of the national debt at present, but is quite acceptable to me as a start.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Jan 10th, 2013 at 06:10:10 PM EST
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