A Real Debt Solution

Along with a more efficient government using its resources to help its citizens, there is a solution that needs to happen to lower the amount of debt the US government owes. It is mutual debt forgiveness. The US government owns debts of other countries, and a lot of those same countries own US debt (http://www.bbc.co.uk/news/business-15748696). It is rational for both parties to work together to forgive debt to an amount where 1 party reaches 0 government held debt on the different kinds of debt (equity, long-term, and short-term) as shown on the treasury.gov website (http://www.treasury.gov/press-center/press-releases/pages/tg1285.ASPX) . This will also allow for less overall payments, as part of this deal should include interest not having to be paid on the principle amount that was forgiven (to the point agreed upon). This will only effect debt owned by the governments of both countries involved, but that will still lower the debt by a big amount.

Note that these links show the amounts owned by both public and private sources, but they still give an idea of the scale that can be achieved through an agreement like this.

Treasury Bureau of the Fiscal Service

I plan to vote against any funding bill that doesn’t give a surplus in the budget, and I plan to vote against any raising of the debt ceiling. As a starting point, I propose that the budget be proportionally brought down to 80% of the previous year’s tax revenue, in order to have a surplus budget, with the percentage level of all places that federal money goes to being brought down. So for example, in a hypothetical situation where currently $10 goes to place A for funding, and $8 goes to place B, going down to 80% would give place A $8 of funding and place B $6.40. Of course the budget is a lot bigger and goes to many different places, but this is just an example to show how similar math would hypothetically work. The extra 20% would go towards paying back the debt. The current federal debt is over $20 trillion (https://fred.stlouisfed.org/series/GFDEBTN), and this needs to start going down as soon as possible. To put this into perspective, if the federal government were to stop all spending now and put all estimated $3.654 trillion dollars of 2017 federal tax revenue (https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/budget/fy2018/budget.pdf) towards paying the federal deficit at its current level, it would take over 5 years to pay off the debt, again that is with the federal government cutting off all spending. This will get worse unless someone goes into congress with real plans to decrease the deficit, and I intend to be that person if you’ll have me.