Politics & Money

[SOROS]

QUESTION OF THE YEAR?

If the Fed needs to keep printing $1 extra Trillion a year to keep everything held up, why do they not simply print enough to pay off ALL the debt at one time? This way, the country basically owes itself, and they would not have to pay any interest on the debt or worry about rising interest rates and having to manipulate to keep them so low? Wouldn't this allow them to mess with interest rates in certain areas to stimulate things, without the worry of having to meet higher interest payments? They have already printed several extra Trillion, so what's a bit more to just end the debt?

Obviously, this plan would only work if they stop spending more than they take in, but what's the flaw in this plan? I'm feeling my age on this one and may be slipping a bit. What are the upsides and downsides of this plan, and why has no one thought of it previously?