It may already be too late to head off U.S. government bankruptcy, but it is not too late to prepare yourself.

The projected deficits and current national debt are a dire emergency. They have already severely hurt the national defense. They will cause hyperinflation if not reversed.

Republicans waiting for the Democrats

The position of the Republican Party is they cannot address the national debt-to-GDP ratio without Democrat support and therefore they will not even mention it until the Democrats indicate they are willing to cut entitlements.

Democrats are waiting for the U.S. government to go bankrupt

Democrat policy is they will INCREASE entitlements and NEVER cut them. The Democrat policy is suicidal. They literally want the nation to crash because when it did in the Great Depression they had their best ever political success. They think this will happen again when the direct deposits of social security and interest payments on U.S. bonds lose all purchasing power.

It may already be too late to prevent that.

The Republican policy is the Democrat policy

And because Republicans refuse to do anything other than follow the Democrats’ lead, the Republican policy is, for all practical purposes, the Democrat policy—the opposite of what they claim to believe it. 

Both parties are utterly immoral and leading the nation to federal government bankruptcy. Those who are dependent on the U.S. government not being bankrupt—owners of USD-denominated bonds, recipients of social security and other pensions—will also become personally bankrupt or poorer, depending upon how much they have prepared for the U.S. dollar to become worthless.

American people, not politicians, must take control

The American people must wrest control of fiscal policy from the hands of politicians. Politicians, almost by definition, cannot vote for the absolutely required policy of the federal government living within its means. 

We must amend the Constitution to decide fiscal policy through national binding referendums. 

We must also amend the constitution to ban new federal debt. This is better than a balanced-budget amendment because budgets depend on income projections which can, and have been, falsified to avoid the discipline the balanced budgets are supposed to impose. Only a ban on all new federal borrowing stops deficit spending.

I would allow refinancing of existing federal debt as it matures, but only with 30-year, self-amortizing bonds. Those are like the familiar home mortgage. Each payment is part interest and part principal. So after 30 years, the bond will be totally paid off. 

At present, U.S. government bonds have varying terms up to 30 years. But they are what is known as interest-only bonds. That is, we pay the interest quarterly, then have a balloon payment of the entire original amount of the loan at the end of the term of the bond. They should be called kick-the-can bonds. The 30-year, self-amortizing bond I propose, is a pay-off-the-national-debt bonds.

Furthermore, this pays off the national debt about as gradually as possible—a little bit of each payment over 60 years. So where does the number 60 come from?

We probably issued a 30-year U.S. government bond recently. It is an interest-only bond. That means it will not be paid down at all until 30 years from now. At that time, it will have to be refinanced with a 30-year, self-amortizing bond. 30 years on interest only + 30 years of self-amortizing = bond totally paid off in 60 years.

Wringing their hands but not getting it done

There are a couple of non-profit think tanks wringing their hands over the national debt-to-GDP ratio, like the Peter G. Peterson Foundation. But as far as I know, they have no plan. My plan would get the job done as gradually as possible. I appear to be the only one on earth with a plan that would get it done.

Some would say my plan is no more politically viable than the current Republican “plan” (whatever the Democrats will vote for)—because 3/4 of the states will not ratify these amendments to the Constitution.

Fine, then adopt my Plan B individually on your own.

What is my Plan B?