The most efficient to fill the trillion dollar hole left in the budget if middle-class income taxes are eliminated might be to take an axe to the trillion dollar interest tab and the federal debt sustaining it. Assuming $9.2 trillion in debt maturing annually, the whole debt could be moved onto the books of the Fed in about four years, and since the Fed is required to rebate its profits to the Treasury after deducting its costs, this could theoretically eliminate the interest burden. Thus if the Fed were to buy $9.2 trillion in federal securities this year, it would receive $9.2 trillion × 3.3% in interest but would have to pay IORB on the same $9.2 trillion at 4.4% to the banks, a net loss to the Fed.
Author: Ellen Brown
Published at: 2025-05-14 22:49:04
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