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National Debt Refinance Administration
Fed eyes Nordic-style nationalisation of US banks reads the London Telegraph headline. Instead of “bailing out” powerful elite money makers and managers, the Federal Government should BAIL OUT THE ENTIRE COUNTRY!
My proposal is simple. Anyone and everyone. This means individuals, businesses, state and local government can apply to have their debt refinanced by the “National Debt Refinance Administration.” The deal is the borrower waives the right to discharge the debt in a bankruptcy or insolvency case. In exchange the debt is arbitrarily refinanced by the “NDRA” at a fixed 2.00% interest only rate with no prepayment penalty attached.
For example, someone with a $10,000.00 credit card balance would be required to pay $16.67 per month to remain current on the bill. A $500,000.00 mortgage would get knocked down to $833.33 per month. Lenders would be forced into the plan because they would have the benefit of receiving steady monthly payments. The principal balance due would never go DOWN unless the borrower make a principal payment or paid the entire balance off unilaterally. Since this is unlikely, lenders would still reap sweet profits.
In the event a borrower defaulted, the NDRA would give the lender a 2.00% interest only bond to compensate for the default. The NDRA would then own the loan lock/stock & barrel. At this point, the defaulted loan would be treated like a non-dischargeable student loan or “federal tax lien.” The NDRA would be given sweeping powers like the IRS to obtain payment from the debtor.
There is an estimated $50Trillion+ of outstanding debt in America. Even if all $50Trillion were in default, it would only cost the NDRA, a totally unconstitutional agency about $83Billion per month or about $1Trillion a year. This would be at first a one shot deal, meaning that the loan must have been originated prior to the enactment of the NDRA. Politicians will probably make the NDRA an ongoing refinancer of debt. This will totally destroy any notion of personal responsibility. But as a one shot deal, it would drastically keep the Banks and lenders afloat, would loosen the burden on borrowers big or small. Corporate Welfare Now! Corporate Welfare Tomorrow! Corporate Welfare Forever!
Hungry for more?
Brilliant.
Riddle me this: who won the cold war?