Liquidating Federal Assets A Promising Tool for Ending the U.S. Debt Crisis

By William F. Shughart II, Carl P. Close  |  Posted: Mon. March 6, 2017

The national debt may be the biggest problem in decades that federal policymakers have failed to confront. Its importance is measurable not only in dollars—almost $20 trillion ($61,552 per capita)—but also in the grave threat it poses to the American financial system and therefore to the health and well-being of private businesses and households. A default on a scheduled federal debt payment, caused by the government’s lack of funds necessary to service its debt obligations, could spark a fire sale on U.S. Treasury securities, prompt a sharp fall in the value of the dollar, and launch a rapid “flight to quality” as investors and dollar holders flee to the perceived safety of other nations’ bonds and currencies—all culminating in a U.S. financial meltdown.

This worst-case scenario is not the only concern. Even if the Treasury has overdraft protection in the form of the Federal Reserve, the large debt servicing requirements exact a heavy toll on public services and economic growth.

This Executive Summary examines the potential for vastly improving the U.S. government’s fiscal position by using a method seldom utilized for the purposes of federal debt-reduction: the sale of federal assets..............To Read More....

My Take - Since this is a blast from the past article let's take a look at my Wednesday, January 30, 2013 " Get Out of Debt Card!", which I think actually outlines this issue better.  Please enjoy.