1) Eliminating the IRS - this would be awesome, no doubt, but the consequences would be - interest rates soar - after all, if there is no money to pay the interest on the bonds, why would foreign holders continue to hold our debt?.....the stock market declines nicely, perhaps 30-40% (maybe more) because the ability for our government to issue debt is vital for our economy....the dollar plummets further, perhaps to $4/euro, why? well when those foreign debt holders dump our bonds they will sell dollars and buy back their currency. 2) the elimination of the federal reserve......with no lender of last resort who would prevent runs on our banks when there is a mad rush to convert meaningless paper assets to gold 3) putting us back on the gold standard would cause mass inflation while the economy plunges into recession because no money to back our bonds and no fed to rescue the banks, everything of real value rises - gold, wheat , oil.... no way he could do it even 2 terms
2007-12-31
09:10:07
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20 answers
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asked by
james_r_keene
2
in
Politics