The interest that could be earned by government on the outstanding private debt would be $1.4 trillion, that is larger than the total income tax – from individuals and corporations – collected last year
DENVER, Oct. 22, 2010 — The Following is the fourth of a six-part statement by J. Moromisato.
4. A Zero National Debt Within a Decade Can Be Achieved with Freed Money Technology and the Denver Plan
With a growing national debt, now about 100% of our GDP, saddling our country with near $400 billion in interest payments every year, shouldn't we worry about reaching a breaking point?
There is the Denver Plan solution, which the mainstream media continues to ignore. It may be up to you to spread my message until the powers-that-be pay attention and do something about our dysfunctional financial system.
The Denver Plan explains how all the money government overspends, namely the annual fiscal deficit, goes one way or another into the pockets of the super-rich, which they in turn lend to the government in exchange for tradable securities that increases their wealth.
The Denver Plan proposes the establishment of Freed Money, which would decouple, or disconnect, the savings of the rich to the all-important flow of credit; this would enable the government to gradually raise taxes on the super-rich to the levels prevailing in the 1950s and 1960s — when our country enjoyed the longest period of sustained economic growth.
Freed money would allow the Fed to replace all the privately held debt with bank-debt to the Fed, and the interest paid by the banks would thus constitute a new revenue stream for the government. How big would this be? The total outstanding debt in the U.S. is about $50 trillion, of which about $35 trillion are owed by private entities; at some point, perhaps a decade or so in the future, all that debt would become assets to the Fed; at a 4% interest rate, the interest to be earned by government would be $1.4 Trillion, that is larger than the total income tax — from individuals and from corporations — collected last year.
The combination of new interest and higher taxes revenues would enable the government to gradually pay the national debt — now around $15 trillion. Furthermore, since the Fed would own that debt, and would return the interest it accrues to the Treasury, the government would save that $400 billion from its budget every year.
(Visit http://www.DenverPlan.com for more details)
About J. Moromisato
Born in Lima, Peru, J. Moromisato became an American citizen in 1985. He has a Ph.D. in high energy physics and a Master's in economics. A Denver resident, Moromisato is the author of The Origin of Wealth and Poverty (2007), The Coming Age of Freed Money (2010). And The Denver Plan to End Unemployment (Forthcoming).
Contact: J. Moromisato, (303) 321-0577
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