Its importance is measurable not only in dollarsalmost trillion (,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. This examines the potential for vastly improving the U. governments fiscal position by using a method seldom utilized for the purposes of federal debt-reduction: the sale of federal assets. The sale of federal assets for the purpose of debt-reduction warrants serious consideration mostly because of one fundamental issue: Americas debt obligations are so huge that traditional methods for improving the governments fiscal stancenamely, by raising more tax revenue, printing more money, or refinancing/reissuing government debtare inadequate to the task and would create a host of major problems.A default on a scheduled federal debt payment, caused by the governments lack of funds necessary to service its debt obligations, could spark a fire sale on U. 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 currenciesall culminating in a U. Raising the necessary tax revenue would, for example, siphon off significant funds from businesses and households, thereby slowing the wheels of commerce and reducing household wealth.
Now a new and authoritative voice has joined the debate.
The debtor must not have had a previous bankruptcy dismissed for cause within the last 180 days.