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You -- -- -- a piece of the government renowned economist Robert Shiller of Yale University thinks selling shares of our country's GDP to investors.
Would be a simple and effective way of getting the economy back on its feet.
Me now Robert thank you so much for being here.
I feel like there's a sneaky lesson for the government in here so let's talk through this slowly.
How exactly you would this work after IPO -- And -- selling shares of GDP.
How many shares are there what would be worth what would any contingent upon what we throw it.
-- the government right now hasn't debt that is conventional.
It pays an interest rate which is fixed.
We could change that we could.
When the debt comes there -- as it does regularly we have to refinance that we could put out.
They share in GDP.
I I think American hamster and I were promoting this now.
Proposed -- -- -- one trillion charity keep it really simple stuff is now the GDP is about fifteen trillion -- this year.
That'll pay fifteen dollars next year who knows you know depends on what -- so what's the manager -- what does that change.
But it's more sophisticated finance government seem to be very stick in the mud traditional just straight debt.
This it's -- now -- -- to what corporations do.
And it's better risk management for the government and for the country and it makes -- more interest seeing investment for investors.
I think it it's -- That it will help solve our debt crisis.
-- Martech president thinking like hit the way things are going probably -- mean it's very easy for them to sell -- if you look at the yields right now I mean it is cheat everybody.
Cheap to borrow money for the government everybody wants to -- the debt the way it is if they get in trouble they can just inflate their way out a bit -- -- that.
I mean because if he is your GDP you know everything's rising at the same -- -- can inflate your way out of debt.
Mean I government would like this very much is is that what you mean.
Inflating our way out of debt is -- American and I don't think we'll do the -- we are gonna you say we cut.
And people worry that we might but we're not gonna do that.
Not an -- but there was the real thing is that this is going to be a solid promise to pay a fraction of GDP which I think.
Is ultimately more credible.
It's credible because the government can do that we know they can do they have a tax base based on GDP.
Would you meet her risk him.
Counties where you're no good to -- how many shares that somebody combining what if you had instead of Carl Icahn as your activist shareholder.
We need to have -- -- all aside all of a sudden becomes you know sort of your nightmare activist shareholder and in the US economy would you limit who condone what.
I thought these would be nonvoting shares.
So doesn't matter who buys them.
That they just like you don't get a vote in the US for buying the debt either sort out just the same.
But we don't wanna issue too many of them I think -- now has -- debt ceiling and you want to make the debt ceiling include these as well.
All right Robert Shiller thanks for coming on interesting -- and I don't think they're gonna go for it but I like it caused some day that's only -- -- -- -- and -- -- did you that.
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