As long as we have a Fiat based Monetary system where ALL Federal Reserve Notes and Credits are LOANED into Society with interest attached, it is Virtually Impossible to even have a Balanced Budget, let alone one that actually pays down debt.
Even paying down $1 Dollar on National Debt will put this country into a depression, the likes that have never been seen before.
Currently our Deficit is running 8% on a simple math basis, after going through the Magical machinations of the Federal Reserve System it comes down to about 5% Dilution Rate for ALL Existing specie in existence.
As you see, a Balanced Budget will be an IMMEDIATE 5% HIT on the Economy and GDP with deflation setting in quickly.
Don’t get me wrong DEFLATION is what we need, Ever since the Coinage Act of 1964 and the Bankruptcy Executive Order signed by Nixon on 8-15-71, we have INFLATED and DILUTED All Federal Reserve Notes and Credits Annually on average about 5%. That is a Whole Lot of Inflation that needs to come back out. Unfortunately I don’t see The American People ready to go back to $10,000 Brand New Homes, $2000 New Cars, and 10 Cent loaves of bread, which is where prices were before the WELFARE STATE BEGAN and the Pure Fiat System went into High Gear
IT IS MATHEMATICALLY IMPOSSIBLE
Even paying down $1 Dollar on National Debt will put this country into a depression, the likes that have never been seen before.
An exaggeration. We have paid down modest amounts of the debt before, without a depression.
Deflation does not equate to depression. We had significant economic growth with deflation for considerable periods of time.