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The bolded is the part of your post that I disagree with. To have a noticeable effect on that enormous pile of money, you'd have to be "offering" enormous discounts. And I don't see how you'd find a "willing seller" in that case.
Not true since the US Government finances most deficits short term, i.e. less than a year..
Some bonds are already being issued with negative rates, meaning they give you $100, but then cash out at $99
That's not really the way reverse auctions work. A $10,000 T-bill, if rate of interest was 2.5%, would sell for $9,750 -- which means that the government is borrowing $9,750 and will repay $10,000 at maturity. At maturity, the government pays $10,000, which is a debt of $10,000.
A bond issued at a lower rate means that the amount borrowed gets closer to the amount paid at maturity. Thus, a $10,000 bond at 1%, the lender to the government would lend $9,900 and receive $10,000 at maturity.
What the Trump proposal does it not give back the full $10,000 at maturity, which nobody would agree to accept.
People DID agree to accept less under Clinton.. They held reverse auctions where they took those $10K bonds and agreed to buy them back early, at a discounted rate, and those who went the lowest, got paid off..
Why don't you just come out and say the truth, you don't want a solution.
You don't want anything new, just keep piling up the debt to bankers
and to hell with the American people. Keep looking for excuses, looking
for slavery and victimhood.
When Clinton did it, he was considered a financial genius..
People DID agree to accept less under Clinton.. They held reverse auctions where they took those $10K bonds and agreed to buy them back early, at a discounted rate, and those who went the lowest, got paid off..
Try to stay up with the discussion.
That's not the same thing. If I lend the gov't $9,750 with the agreement that they'll pay me $10,000 in a year. If they call the bond one second after issuance, they owe me $9,750. In 6 mos, $9,875. Calling bonds in early at a discount isn't the same as paying less at maturity.
So in other words, just default. Refuse to pay and then pitch one of his selfish little fits, call names and make blatantly dishonest accusations against anyone who dares to defy him.
Have you ever wondered what it would look like having a spoiled, petulant child as the President of the United States? Well, here you go.
He stiffed his creditors in the private sector, many of who were retirees, who owned his company's bonds as a vehicle to fund their retirement. What a great guy, don't you think?
In fact, Trump is a world-class slimeball, selfish to the core and as dishonest as they come. His conduct in his handling of financial obligations to others are of course just one example from a very long list.
That's not the same thing. If I lend the gov't $9,750 with the agreement that they'll pay me $10,000 in a year. If they call the bond one second after issuance, they owe me $9,750. In 6 mos, $9,875. Calling bonds in early at a discount isn't the same as paying less at maturity.
Wrong..
if you lend the goverment $9750, with a $10K bond payback, but you CHOOSE to take only $9900, you just cut the debt on 10K, by 1%.
And since that $9900 comes from issuing new debt, this saves even more as you arent paying interest in the extra $100 over time.
Again, you hold an auction, where people CHOOSE to turn their bonds in early in order to reinvest at higher rates elsewhere.
That's not the same thing. If I lend the gov't $9,750 with the agreement that they'll pay me $10,000 in a year. If they call the bond one second after issuance, they owe me $9,750. In 6 mos, $9,875. Calling bonds in early at a discount isn't the same as paying less at maturity.
So in other words, just default. Refuse to pay and then pitch one of his selfish little fits, call names and make blatantly dishonest accusations against anyone who dares to defy him.
Have you ever wondered what it would look like having a spoiled, petulant child as the President of the United States? Well, here you go.
He stiffed his creditors in the private sector, many of who were retirees, who owned his company's bonds as a vehicle to fund their retirement. What a great guy, don't you think?
In fact, Trump is a world-class slimeball, selfish to the core and as dishonest as they come. His conduct in his handling of financial obligations to others are of course just one example from a very long list.
Should have read the rest of the thread before you embarrassed yourself with all that hate.
Why don't you just come out and say the truth, you don't want a solution.
You don't want anything new, just keep piling up the debt to bankers
and to hell with the American people. Keep looking for excuses, looking
for slavery and victimhood.
????? No, I think the US retiring debt wherever and whenever it can is good management, for the same reasons that well-managed companies often buy back their debt.
But the US is already buying back debt. If this could make a substantial dent in the debt, why is the debt as large as it is? My point is that if you want to make a substantial dent, buying back debt is not, by itself, gonna do it. Or come even close to doing it.
And, BTW, if I really thought "to hell with the American people", I might advocate forcing the US citizens who hold a lot of the debt to sell their debt back to the gov at a substantial discount. After all, they are the only creditors that the US has any power over. But I don't think that, so I don't advocate any such thing.
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