PROPOSAL:
CARA
Chinese Asset Repurchase Act
PROBLEM: We Owe China $801.5 Billion!
SOLUTION: Pass legislation that REQUIRES the Federal Reserve to buy back ALL of those Treasury Securities and makes those securities a liability of the Federal Reserve.
Do it now.
True or False: The House and Senate approved, and the President signed into law, a bill authorizing $700 Billion to repurchase "troubled assets". This money is to be borrowed against future US taxes. They called it TARP (Troubled Asset Relief Program). The Federal Reserve system had no difficulty whatsoever creating that brand new money (why would they, they make it up on a computer keyboard and deposit electronic digits into accounts.)
TRUE.
True of False: The Chinese hold US Treasury Securities ($801.5 Billion).
TRUE. (some people consider that to be a good investment)
True or False: Congress could pass a law requiring the Federal Reserve to buy back all of that outstanding debt. Also, make the debt a liability of the Federal Reserve.
TRUE. (The Federal Reserve does this all the time when they enter the open market to buy Treasury securities.)
So. Do it.
Let the Fed hold the debt (remember it's a good investment...).
Now, do the same with all outstanding Treasuries. Pay them off.
The Fed would then hold the debt.
BENEFITS:
1. The US foreign debt is effectively zero.
2. All bond holders get paid - in real money (as real as it gets now, anyway...)
3. The Federal Reserve now holds ALL of the US Treasury debt.
NEXT
1. Audit the Federal Reserve. If their new found liabilities make them insolvent - disband them.
2. Pass legislation that authorizes states to monetize production of infrastructure and get busy rebuilding our country - DEBT FREE!
3. Begin trials for fraud and theft by deception.
The illegal institution that has brought so much trouble to every nation on the earth, will be no more.
States can seize their remaining assets and infrastructure, implementing the key principals that are detailed in this blog.
A debt free and prosperous society will follow and liberty will gradually return to the people as their labor will be paid for in debt free money.
Q: What can people do?
A: Pretty much what they decide to do.
