Treasury Reform Proposal: 2 Types: (1) Passive Income (2) Long Term Investments & Funding

Economy
1

Change the way Treasuries are issued, paid, and their types.

  • Type 1 would become a retirement & passive income generator solely for American citizens.
  • Type 2 would be a long term investment vehicle for American citizens & businesses as well as citizens, businesses & governments of allied nations, friendly nations, and neutral nations.
  • Once established, we could work with other nations to promote our Type 2 Treasuries to their citizens, businesses, and governments, with their rates of return, thereby increasing government revenue.

New Treasuries Idea Type 1:

Dividend Treasuries

  • These Treasuries would be permanent dividend payments.
  • Treasuries would yield a permanent 10% return in monthly dividends. Dividend payments begin for each investment 12 months after each investment at which point the investment becomes part of the cumulative investment.
  • Option: Dividends can be automatically reinvested into the Dividend Treasuries where they will bypass the 12 month rule so long as they are not withdrawn within that 12 month timeframe.

Dividend Payment Distribution Conditions:
(1) Prosperity Payments = 10%
Condition: Economic activity is normal. People are not becoming unemployed en masse. Government has no problems functioning.
(2) Resilience Payments = 5%-7%
Condition: Government is having a harder time budgeting due to economic downturn.
(3) Endurance Payments = 0%-4%
Condition: Extreme measures must be taken due to war that threatens our land. Entire sectors of the economy shut down, or likewise.

Issuance: Infinite / Continual
Exclusivity: Only American citizens may purchase Dividend Treasuries.

New Treasuries Idea Type 2:

Flat Rate Non-Compounding Treasury

Offer Treasuries that offer a fixed & capped yield that do not pay out dividends.

Yields & Capped Returns:
1 Year Treasury: 4%
2 Year Treasury: 5% / year (capped 10%)
5 Year Treasury: 6% / year (capped 30%)
10 Year Treasury: 7% / year (capped 70%)
25 Year Treasury: 8% / year (capped 200%)
50 Year Treasury: 9% / year (capped 450%)
100 Year Treasury: 10% / year (capped 1,000%)

Issuance: Infinite / Continual
Exclusivity: American citizens & businesses as well as citizens, businesses, & governments of allied nations, friendly nations, and neutral nations.
Early Withdrawal Penalty: Principal returned, but all interest forfeited.