To: Jack Lew, US Treasury Secretary, Ben Bernanke, Chairman of the Federal Reserve, President Donald Trump, The United States House of Representatives, and The United States Senate
Special Issue Treasury Note: America should borrow from Americans first.
The US Treasury should refinance a portion of the existing national debt by issuing a Special Issue Note made available only to US citizens with a social security number. The note should carry a minimum coupon of 3% (the current cost of 30yr UST bonds) and should be redeemable any time at 100% of the face amount of the note thereby eliminating the duration and interest rate sensitivity risks of owning long term bonds. The special issue note should be administered through TreasuryDirect.gov., an existing on-line platform. The purpose of this Special Issue Note is to provide an investment safe haven for the middle class and elderly citizens who have been severely impacted by the disappearance of federally insured bank deposit products. The disappearance of these bank products has been a direct result of the Federal Reserve Quantitative Easing (QE) strategy. These classes of people have depleted savings and implemented household austerity programs for the past five years and can no longer withstand the drain on household wealth caused by the QE program. This Special Issue Note will reduce the financial impact of QE on the middle class and the elderly at very little cost to the US Government.
Why is this important?
The US Treasury should refinance a portion of the existing national debt by issuing a Special Issue Note made available only to US citizens with a social security number. The note should carry a minimum coupon of 3% (the current cost of 30yr UST bonds) and should be redeemable any time at 100% of the face amount of the note thereby eliminating the duration and interest rate sensitivity risks of owning long term bonds. The special issue note should be administered through TreasuryDirect.gov., an existing on-line platform. The purpose of this Special Issue Note is to provide an investment safe haven for the middle class and elderly citizens who have been severely impacted by the disappearance of federally insured bank deposit products. The disappearance of these bank products has been a direct result of the Federal Reserve Quantitative Easing (QE) strategy. These classes of people have depleted savings and implemented household austerity programs for the past five years and can no longer withstand the drain on household wealth caused by the QE program. This Special Issue Note will reduce the financial impact of QE on the middle class and the elderly at very little cost to the US Government.