ENGINEERING ECONOMIC VITALITY FOR ALL
Introducing Coupon Stripping
A payments tax balances the budget, and that would allow us to finally pay off the national debt.
The Fed would generate reserves to buy back Treasury bonds, then cancel the bonds.
We can not pay off the debt in one lump sum, as that is too much to be deployed in the capital markets at once. It would take eight years to repay the debt with Coupon Stripping.
When we issue Treasury bonds, it is the same as printing money. We have created two forms of money: currency and Treasury bonds.
The difference between currency and Treasury bonds is that bonds earn interest, which is what makes them so problematic.
Treasury bonds are why a loaf of bread costs $3 today instead of ten cents as it did in the 1940s.
We end up paying the taxes we are trying to avoid by borrowing. We pay them through the inflated cost of goods over time.