Executive Office of the President

How to Save $1.06 on Every New Dollar Created

I suggest you immediately instruct Treasury to cease and desist printing bonds, notes and bills (all instruments of debt, i.e. I-owe-you’s) which are used to purchase Federal Reserve Notes for more than face value (yes, that’s right, when you include the interest we pay ~$1.10 for each $1 that gets created). Next, instruct Treasury to start printing U.S. Treasury notes again which would only cost the paper and ink for each $1 created. The effect would be to 1) immediately halt the growth of the National Debt, 2) the amount of debt service (interest) that the US pays will immediately start shrinking (and will shrink to $0 over the course of 30 years), 3) provides for a debt-free currency that remains in circulation accomplishing its function of supporting commerce until the paper wears out and needs to be replaced, 4) the savings would be approximately $1.06 for every new dollar that is created (assuming $0.04 for paper and ink to print each U.S. Treasury Note and $1.10 life-cycle cost for each Federal Reserve Note), 5) can be backed by silver to defuse the critics who claim we would print too much. I believe Kennedy tried this with Executive Order No. 11110.

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Idea No. 17069