None of these people are smart enough to think of the evil plans are coming up with. Trump sure isn’t. Elon has screwed up everything he ever touched.
WHO IS COMING UP WITH THESE EVIL PLANS?
GASP! IT’S MELANIA!!!
In February, he said the government could “monetize the US balance sheet for the American people.”
One way to do this would be to revalue America’s gold reserves.
The US still prices its gold reserves at $42.22 an ounce.
If revalued to the market price of around $2,900, it could create nearly $900 billion in new equity overnight.
This would give the government a new pool of capital without borrowing more money or printing dollars.
Other assets, including federal land, real estate, infrastructure, and even confiscated cryptocurrency, could also be used.
The logic is clear: the US owns trillions in untapped assets but still runs massive deficits.
They want to put federal land up as collateral for loans. Instead of just issuing debt in the government’s name, they want to get lower interest rates by putting up US land as collateral. And when they manage the government right into default, the bankers will take possession of all national parks and federal land. That’s what ‘monetize’ means. It means put up as collateral.
$0.9 trillion is nothing compared to a $37 trillion national debt, even ignoring the fact that they just want to transfer our wealth to the rich.
It’s not “creating new equity,” it’s visiting a loan shark and putting your body down as collateral. The national parks are ours, not theirs to do with as they please.
What bank in their right mind is going to take that bet? They’d be gambling that when the government defaults, we wouldn’t have some ass-clown in office with a penchant for welching on contracts.
You’re looking at it backwards:
They’re going to give public lands to themselves and their friends with this mechanism.
This is exactly the plan. Last week the GSA put out a list of 400 federal buildings they wanted to sell, a list that included buildings like the FBI headquarters. They want to sell these building to private owners then make up any shortfalls in space with leases from them.
The problem is there’s a very real risk the American people will view the move as illegitimate and prevent the land from being taken in the future, ie under a new admin that jails trump or something. The point of collateral is to reduce risks, not introduce new and exciting ones. Nobody is going to accept lower rates on this unless the aforementioned quid pro quo is real, in which case the deal is already illegal and the downside risks now include prison.
Yes this is idealistic, but the threat is still real and that’s how finance people calculate interest.
What the hell is a bank going to do with Yosemite National Park?
Raise ticket prices to. $180 pp, build a hotel and conference center, install a theme park, cobalt mining.
If we had an opposition party that wasn’t comatose, it would be announcing that any debt purchased under this scheme would not be honored once Trump is out of office.
Devaluating federal debts will seriously impact the ability of the government to raise money. Nobody in his or her right mind outside the US will buy bonds anymore if they are risky, potentially worthless papers.
This is skirting close to declare American bankruptcy to international markets.
Devaluating federal debts will seriously impact the ability of the government to raise money.
Yeah, that’s probably the point.
This is skirting close to declare American bankruptcy to international markets.
It wouldn’t be the first time.
