“We ARE “Taxed Enough Already” and this is a barfbag article, but an abrupt 25% reduction of cash flow to the economy will lead to an economic meltdown.”
Let’s see, the federal government is borrowing 100 billion a month, so if the government stopped borrowing 100 billion a month cash flow would drop by 25%, well it seems to me that money put in treasuries is not going in to the economy or into products that people want, but is employing people that make rules to prevent you from exercising your economic freedom. It seems to me that that money would go into the productive economy.
money put in treasuries is not going in to the economy or into products that people want,
>> If the interest rate goes up (which of course it will from a ratings downgrade or default) taxpayers will be holding the bag for the higher rates of interest on treasuries, on top of the current debt.
It seems to me that that money would go into the productive economy.
>> Eventually, if there was anything left after the bankruptcies and riots. We need a systematic and continuous approach to spending reduction rather than an abrupt meltdown.