The President, the Fed and the Treasury must not allow political strife to destroy the financial future of the nation and, perhaps, the world.
A Show Stopper
The Federal Reserve Bank as a result of the QE programs, has accumulated holdings of US debt in excess of three trillion dollars. This debt has been issued by the Treasury making the United States both the debtor and creditor. Generally accepted accounting rules, should the US be treated as a business entity, would net out this debt on the balance sheet.
In fact, the debt of the United States, under generally accepted accounting is three trillion plus dollars less than the accepted rhetoric.
What to Do
Surely the administration can engender some realistic accounting procedures which net the “intercompany” debt, the normal accepted accounting procedure or, should the political squealing reach too high an octave, encourage the Treasury and Fed to negotiate the cancelation of debt issued by the US and owned by the US.
Perhaps just the threat of this equitable solution will move the small thinking destructive clique, who would ransom the world economy to further political goals, to move on and deal with politics in a more reasoned manner. Should the threat not move these folks, the cancellation of the debt will suffice to keep our country solvent and out of the path of scorn and ridicule.
For the future and good of our world the cancelation of the QE programs and giveaways to the banks will be of help. As the giveaways have reached near one trillion dollars which now stand as debt we will be well served with a discontinuance of such economic folly.