Paul's plan: cancel the trillion+ in debt that government owes itself and the Fed ??

[TeeKole]

Ron Paul's plan (that he's been spreading over the last couple weeks but hasn't really gotten attention from the leadership) is to cancel the trillion-plus in debt that the federal government owes to itself and the Federal Reserve.

It would probably mean a downgrade, but I'm 99% certain that we're going to be downgraded anyways.

I don't usually like Ron Paul's economic policy, but if all else fails, should this be looked at? It would buy us more time.

[mom]

Really ... I don't know. I presume Dean Baker to be more knowledgeable than myself even if he is a bit outside of mainstream economics. Perhaps monetary policy is outside of his fielRAB of study. I guess I'd have to see his ideas about the immediate effects of the proposal and how he thinks the Fed would cope without OMOs.

As I said, that column really only mentions re-absorbing the trillion dollars, and doesn't really elaborate on the repercussions beyond that one aspect.