What if the United States adopted a new approach to "debt," instead realizing that we are acting like the world's banker, keeping its money safe. Say we lowered the rate on the 10 year bond to -0.25 percent! A "use it or lose it" policy that punishes people for not spending!
We could combine this with greater deregulation of the private financial markets, thus encouraging those who want growth and risk to invest there, while those behemoths like China, who just want to park their money somewhere, can pay for the privilege. Overnight, our $15 trillion "debt" would become reserve deposits, and even turn a profit of $37.5 billion a year!
More countries would invest in America, since it would be profiting from the deposits, which would, in turn, make it a sounder investment.
I kind of think we're moving in that direction anyway, since if push comes to shove, where is the world going to put its money? Our bonds are backed by nuclear weapons!



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