Sanders to propose canceling entire $1.6 trillion in US student loan debt

If it takes 10 years to pay down $35,000, you're doing it WAY wrong. College isn't worth the effort unless that kind of money can be paid back in ONE year.

 

Don't fund or loan for 'vanity' courses. If people want to study Poetry, Sociology, Art, Music, History etc, they need to fund it themselves. These working and middle class kids taking such useless courses when they clearly can't afford it, are the problem. THEY are the ones creating this massive debt, it's not the dentists and engineers.

Fund or loan on ONLY courses leading directly to well paid full-time employment, in fields where there are plenty of jobs.

 

They'll do the same thing they would do with it if the people who owed it paid their debts. Else pay off my mortgage and just think what the people I owe it to will do with it.

 

Sounds like a good plan to help middle america.

Cancel student debt
End the intervention and wars overseas
Medicare for all
Holding wallstreet accountable so they dont screw us again

Or we can go with beto’s plan of america coming together and achieving greatness.

Or maybe kamala tell us about racial inequality

Hey joe biden has a great plan called make america sane again. That sounds really nice.

 

while he's at it, can he cancel my alimony payments ... also, it'd be mighty dandy if he canceled taxes,& utility bills too...

 

As you've just finished hailing the virtues of a tax based healthcare system, so you can take from your neihgbors

 

It's help rich American more that middle America.
So who are you going to get all the countries to end all wars, what's the plan?
The Seniors like me who have paid all our lives won't let you turn Medicare into a public welfare system.
If you got screwed it's your own fault, I did quite well.
So what is Beto's plan to do that and be specific.
Harris came from highly successful parents in an upper middle class standard of living so who is she going equalize it up with the poor whites who didn't?

 

When i mentioned other candidates like beto and harris i was being sarcastic. Their candidacies offer nothing but empty promises and platitudes. Sanders on the other hand is actually offering ideas and solutions that would help a lot of struggling americans. Most of the candidates are running on ideas similar to what Sanders is about but only because thats where the enthusaism within the party is.

Forgiving student debt would be a good thing since the bush administration and congressmen like joe biden allowed the banks to prey on future generations of students. College is not affordable. And spending most of your adult life paying back those loans is a shade of slavery. Maybe senior cizitens like you didnt have to worry about that level of debt when you were young, but its a rampant problem for people me generation and younger. Wall Street gets to screw us and they take our tax money to bail them out of going bankrupt and nobody goes to jail or even sees the inside of a courtroom for their criminal behavior. What about that sounds fair to you?

 

https://underground.net/money/who-can-really-create-money-the-treasury-or-the-federal-reserve/

<<"But I digress. Back to who creates money.

Now, if you were one of the smart ones and answered “The Federal Reserve creates money!” Guess what? You’re wrong, as this question is actually a “double gotcha” question!

The Treasury creates money by paying people to do something. Build roads, build schools, hospitals, parks, companies hired to build things, and so on. That money is “printed,” created out of thin air.

When the Federal Reserve “creates money,” it doesn’t. It determines the climate whereby banks are able to LOAN people money.

The key word here is LOAN. When you BORROW money from a bank, you get cash right away, but you still have to pay that loan back. It exists as a credit and a debit on a balance sheet – they cancel each other out. So that is not money created, it is simply borrowed.

When the Treasury creates money, it does NOT borrow it from anywhere. It creates it from scratch and pays it out into the economy to stay there. The public ends up with more money circulating AND they end up with a road they can use.

So, next time someone tells you “The Fed (or private banks) creates money.” You can answer them calmly, and explain why that statement is incorrect.">>

Now, ready to address the point about funding education via treasury versus funding by private debt?

BTW, who is the "leading MMT economist who is a dumbass"?

 

Both you and distaff are missing the point, as are those Dems who are being misled by orthodox neoliberal economists.

The Government doesn't need to raise taxes to invest (aka spending); the government spends first and then taxes as required to check any inflation (see my preceding post re money creation by treasury).

The whole neoliberal narrative is erroneous; but obviously time will be required to overcome this Neoliberal orthodoxy.

Just sayin'. (I see you are not showing any impulse to educate yourself - unfortunately that's part of the human condition).

 

Sanders promises are no less empty than theirs. His transaction tax won't raise near as much as the number he pulls out of the air. People will engage in less economic activity which will also lower capital gains revenues. He will shut down risk taking innovations and expansion.

How have the banks preyed on them the banks have been perform a service for them it's the colleges that have preyed on them enticing then to attend to pay huge tuitions for studies that will not lead to a career to pay for these unjustified rises in tuition cost.

Again TARP was PAID BACK and paid back WITH INTEREST. But do give me an example of how Wall Street has screwed you. I've done quite well on Wall Street and have a nice retirement nest egg I will soon be withdrawing earnings from. Those earnings are very important to me and Sanders can keep his hands off of them to give to people who will earn more than I did while I was working.

 

I'm asking what the people who get the $1.6 trillion paid by the government will do with the money. To cancel the debt, some persons/corporation/whatever has to get paid. I'm not talking about the person who was a student. Hint: they aren't going to buy farms with that money.

 

Paid back with interest to who? Thats great you did well. Now tell that to the millions of people who had their homes forclosed and went bankrupt because of their criminal practices.

 

$1.6 trillion in student debt also involves $1.6 trillion in wealth that was invested in the debt to make back that amount of money with interest. For the government to pay off the $1.6 trillion, it would have to use treasury bonds and that means there would need to be a demand to buy $1.6 trillion in treasury bonds. That's a lot of money and I've never seen such amounts exchanged before, even looking at total investments for GDP. Given enough time, it could be done, but I'd like to see the reality of how it can be done.

 

How many trillions were spent between wars in afghanistan, syria and everything else in between?

Someone suggests the gov’t set aside some money for you to be able to get treated at a hospital and the kneejerk reaction is to ask how we’re going to pay for it. Cool.

 

There is also a "war on men" side to this: those that do not receive a subsidy pay for it. When something is way more one way than another regarding the sexes, it is considered "gendered".

6/10 College attendants are women. Only about 40/10 are men. This is a transfer of wealth from men who earn it, to women that did not. More exploitation.

 

So was I, try again.

 

There is no try and like I said selling $1.6 trillion in t bonds and finding things to invest $1.6 trillion in isn't easy.

 

All of them.

You haven't explained how the FED creates money for the treasury.

 

......

Except we, and I include myself here since I myself am a business owner, have been doing that since inception so.................................................................................................................................................................................................................

 

Your original question was:

"The treasury does not create money.
But you can demonstrate your economic prowess by describing how money gets in the treasury"

My answer was:

<<"The Treasury creates money by paying people to do something. Build roads, build schools, hospitals, parks, companies hired to build things, and so on. That money is “printed,” created out of thin air".>>
- mostly entries on a computer.

You replied with a non sequitur:

It doesn't.

>>"When the Federal Reserve “creates money,” it doesn’t. It determines the climate whereby banks are able to LOAN people money">>

- remembering that banks also create that loan money 'out of thin air' when they write loans (create deposits) for creditworthy customers.

.

 

Stop evading.
How does the money get in the treasury so it can "pay people to do something"?

 

I'm guessing you probably don't earn enough to even be hit with these tax increases. I think that some of the tax increases on owners and executives will get transferred in many different directions: On their pay, on employee wages, on customers, on shareholders, on investment, and on profits. As long as this money is going to things like healthcare, education, and requirement, then it will be more good for workers than bad. We can always increase those taxes on the wealthy again, if they boost their wages to compensate.

 

Answer:
"That money is “printed,” created out of thin air" - by the authority conferred on the US treasury by the US government, which is a sovereign government with monopoly currency issuing powers.

For the sake of your education, and any others who might be interested, here is an introduction to the concepts of "horizontal" money, created in the private sector, and "vertical" money, created in the government sector.

https://seekingalpha.com/article/197049-the-concept-of-vertical-and-horizontal-money-creation

<<When the government “spends,” the Treasury disburses the funds by crediting bank accounts. Settlement involves transferring reserves from the Treasury’s account at the Fed, to the recipient’s bank (which has exchange settlement accounts with the Fed). The resulting increase in the recipient’s deposit account has no corresponding liability in the banking system. This creation is called “vertical,” or exogenous to the banking system. Since there is no corresponding liability in the banking system, this results in an increase of non-government net financial assets.

OTOH, when (private) banks create money by extending credit (loans create deposits), this occurs completely within the (non-government) banking system and results in a liability for the bank (the deposit) and a corresponding asset (the loan). The customer has an asset (the deposit) and a corresponding liability (the loan). This nets to zero.
Thus vertical money created by the government affects net financial assets and horizontal money created by banks does not, although its use in the economy as productive capital can increase real assets.

The mistake that is usually made is comparing what happens in the horizontal system with what happens at the level of government accounting. At the horizontal level, debt is the basis for horizontal money creation. Therefore, it is often assumed that debt must be the basis for the creation of money by government currency issuance. This is not the case.

 

For your education:
No government entity, including the treasury creates currency out of thin air. You are 100% wrong. Only the FED, a private entity creates currency, and it does not create it for the treasury

The money enters the treasury through the sale of USTs, which are debt instruments and must be repaid to the buyer by the US Gov.