Brilliant move if it (debt free) works BUT man its hard to see it working!? Do snakes really eat their own tails? But those debts are still an asset to the owner so even if they go under someone ends up with the paper (bonds and mortgages.)
And usually when you go bankrupt you pay off creditors. Who are the creditors in this scheme? It themselves right? My head is swimming.
LOL Trump has leveraged his "bankruptcies" and came out smelling like a rose. If any man knows that game its him.
So if Joe owes 200K on his home and the fed has a fire sale and sells off the note for 20K, does Joe still owe 200k? Would Joe be allowed to refinance and buy his own loan for 20K? If so sign me up. I want the fed to buy my debt and I will buy it back for .10 on the dollar!
Same with treasuries, say they bought 100% then sold them back to Uncle Sam at 10% what are the implications for the financial industry? They would have imploded while everyone else gets to keep their toys. Sounds great but I there is no free lunch even if fiat money is nothing but hot air it seems risky!
Maybe hyper inflation worse than Weimar. China, Japan and others will be holding cash that may be worthless. Lord talk about Armageddon.
If it works then everyone who says there is no Santa needs to send him an apology.
How much money do you think the Vatican has? If I remember correctly they have a similar deal as far as being bound by no national laws.
There are SOOOO many corrupt drags on the world economic system. Remove those drags and the world economy takes off like a rocket.
