The Beginning Of The End
The Beginning Of The End By Michael T. Snyder - Kindle Version

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National Debt

It really is hard to find the words to describe the true horror of the national debt.  The U.S. government has been on the greatest debt binge in all of human history, and a day of reckoning is coming that is going to be so painful that it is going to shock America to the core.  We have lived so far above our means for so long that none of us really has any concept of what “normal” is like anymore.  The United States has enjoyed the greatest party in the history of the world, but now this decades-old party is ending and the bills are coming due.  It was Dick Cheney who famously said that “deficits don’t matter”.  Well, try telling that to the nation of Greece right about now.  The horror that Greece is just beginning to experience is a preview of what is going to happen to us as well.  Only when it happens to us it is going to be so much worse, because when we go down we are going to bring the entire global financial system down with us.

What we have done to future generations is beyond sickening.  Previous generations entrusted to us the greatest economic machine in the history of the world and we destroyed it.  Now we are leaving to our children and our grandchildren an economic future that has been totally wiped out and a national debt of more than 14 trillion dollars that we expect them to repay.

In Washington D.C. these days, there is a lot of talk about the debt ceiling.  But whatever the politicians do, it is not going to solve our debt problems.  If the debt ceiling does not get raised, we move the financial pain into the present.  World financial markets would crash and that would be followed by a devastating economic nightmare.

If we do raise the debt ceiling, that will “kick the can down the road” a little bit farther.  However, world financial markets will still crash eventually and our eventual economic nightmare will be even worse.

Well, can’t we just “inflate our way” out of debt?

No, unfortunately things are just not that easy.  If we try to inflate our way out of debt, interest rates will likely rise just as quickly as inflation does, and that would be absolutely catastrophic.

Before interest rates even reached 20% we would hit a point where it would take every single dollar taken in by the federal government just to pay the interest on the national debt.

Meanwhile, rapidly rising inflation would devastate the value of all of your bank accounts and every other single financial asset that you own.

So no, inflating our way out of debt is not going to work.

At the moment, the U.S. federal government is able to borrow gigantic quantities of money at super low interest rates.

When that changes, all hell is going to be unleashed.

The following are 41 statistics about the national debt that are almost too crazy to believe….

1 – As of June 20th, the U.S. national debt was $14,344,524,186,068.19.

2 – 30 years ago, the U.S. national debt was approximately 14 times smaller.

3 – It took from the presidency of George Washington to the presidency of Ronald Reagan for the U.S. government to accumulate one trillion dollars of debt.

4 – Since then, we have added more than 13 trillion dollars of additional debt.

5 – The United States government is responsible for more than a third of all the government debt in the entire world.

6 – If you divide up the national debt equally among all U.S. households, each one owes over $125,000.

7 – Mandatory federal spending is going to surpass total federal revenue for the first time ever in this fiscal year.  That was not supposed to happen until 50 years from now.

8 – Between 2007 and 2010, U.S. GDP grew by only 4.26%, but the U.S. national debt soared by 61% during that same time period.

9 – The federal government has borrowed 29,660 more dollars per household since Barack Obama signed the economic stimulus law.

10 – During Barack Obama’s first two years in office, the U.S. government added more to the U.S. national debt than the first 100 U.S. Congresses combined.

11 – The U.S. national debt is currently rising by well over 4 billion dollars every single day.

12 – The U.S. government is borrowing over 2 million more dollars every single minute.

13 – The U.S. government borrows an average of about 168 million dollars every single hour.

14 – The combined debt of the major GSEs (Fannie Mae, Freddie Mac and Sallie Mae) has increased from 3.2 trillion in 2008 to 6.4 trillion in 2011.  Thanks to George W. Bush, Barack Obama and the U.S. Congress, U.S. taxpayers are guaranteeing that debt.  This is debt that is not even included in the $14.3 trillion national debt figure.

15 – Some experts estimate that the unfunded liabilities of the U.S. government for programs such as Social Security and Medicare are in the neighborhood of 60 trillion dollars.  Other experts claim that the total for federal government unfunded liabilities could be well over $100 trillion.  But what almost everyone agrees on is that it is going to be virtually impossible to even come close to meeting all of those obligations.

16 – The U.S. government currently has to borrow approximately 41 cents of every single dollar that it spends.

17 – The total compensation that the federal government workforce earned last year came to a grand total of approximately 447 billion dollars.

18 – The level of government waste in this country is absolutely mind blowing. For example, the Department of Health and Human Services has just announced a brand new $500 million program that will, among other things, seek to solve the problem of 5-year-old children that “can’t sit still” in a kindergarten classroom.

19 – In the past, the U.S. government has spent $2.6 million dollars to study the drinking habits of Chinese prostitutes and $400,000 dollars to pay researchers to cruise bars in Buenos Aires, Argentina to find out why gay men engage in risky sexual behavior when drunk.

20 – The cost for the first week of airstrikes on Libya was 600 million dollars.  Keep in mind that the leader of the opposition in Libya has admitted that his forces contain large numbers of the same “al-Qaeda fighters” that were shooting at American troops in Iraq.  So we are going broke and we are helping al-Qaeda take power in Libya at the same time.

21 – Just one day of the war in Afghanistan costs more money than it took to build the entire Pentagon.

22 – In 1980, government transfer payments accounted for just 11.7% of all income.  Today, government transfer payments account for 18.4% of all income.

2359 percent of all Americans now receive money from the federal government in one form or another.

24 – Back in 1965, only one out of every 50 Americans was on Medicaid.  Today, one out of every 6 Americans is on Medicaid.

25 – Back in 1950, each retiree’s Social Security benefit was paid for by approximately 16 workers.  Today, each retiree’s Social Security benefit is paid for by approximately 3.3 workers.  By 2025 it is projected that there will be approximately two workers for each retiree.

26 – U.S. households are now actually receiving more money from the U.S. government than they are paying to the government in taxes.

27 – Back in the 1950s, corporate taxes accounted for about 30 percent of all federal revenue.  In 2009, corporate taxes accounted for just 6.6 percent.

28 – The U.S. national debt has increased in size for 54 years in a row.

29 – If the U.S. government was forced to use GAAP accounting principles (like all publicly-traded corporations must), the U.S. government budget deficit would be somewhere in the neighborhood of $4 trillion to $5 trillion each and every year.

30According to a shocking U.S. government report, interest on the national debt and mandatory spending on entitlement programs will absorb approximately 92 cents of every dollar of federal revenue by the year 2019.

31 – A recently revised IMF policy paper entitled “An Analysis of U.S. Fiscal and Generational Imbalances: Who Will Pay and How?” projects that U.S. government debt will rise to about 400 percent of GDP by the year 2050.

32 – The U.S. government spent over 413 billion dollars on interest on the national debt during fiscal 2010.

33 – Approximately one out of every four dollars that the U.S. government borrows goes to pay the interest on the national debt.

34 – It is now being projected that by the year 2021, interest payments on the national debt will amount to $1.1 trillion dollars a year.

35 – If interest rates move up even slightly, the interest on the national debt is going to be a whole lot worse.  A recent article in the Huffington Post laid this out really well….

According to a recent note from the sage of Dallas based Hayman Capital, highly respected Kyle Bass, a move back to 5% (2006 levels) in short term interest rates will increase annual U.S. interest expense by almost $700 billion annually. This is against current U.S. government tax revenues of $2.228 trillion (CBO FY 2011 forecast).

36 – If the U.S. national debt (more than 14 trillion dollars) was reduced to a stack of 5 dollar bills, it would reach three quarters of the way to the moon.

37 – A trillion $10 bills, if they were taped end to end, would wrap around the globe more than 380 times.  That amount of money would still not be enough to pay off the U.S. national debt.

38 – If Bill Gates gave every penny of his fortune to the U.S. government, it would only cover the U.S. budget deficit for 15 days.

39 – If you were alive when Jesus was born and you spent one million dollars every single day since that point, you still would not have spent one trillion dollars by now.  But this year alone the U.S. government is going to add more than a trillion dollars to the national debt.

40 – If you went out today and started spending one dollar every single second, it would take you over 31,000 years to spend one trillion dollars.

41 – If the federal government began right at this moment to repay the U.S. national debt at a rate of one dollar per second, it would take over 440,000 years to pay off the national debt.

You might be depressed after reading all of those statistics about the national debt, but there is some good news.

If you would like to help address this problem, the federal government is actually taking online donations that will go towards paying off the national debt.

Try not to laugh.

The national debt is a problem that should have been handled 20 or 30 years ago.

But it wasn’t.

So now what we have to look forward to is a very bleak future.  Even if we totally scrapped our current monetary system and repudiated the debt, the transition would be “rocky” at best and we would not enjoy anything close to the standard of living that we are enjoying today.

Unfortunately, the vast majority of our politicians in Washington D.C. would never even dream of abandoning the current system. Most of them still totally believe in it.

But this current system is headed for an inevitable collapse.  There is no way of getting around it.

Even most of our top politicians are now admitting that our current state of affairs is “unsustainable”.  They just don’t have the guts to do anything about it.

A horrific economic collapse is coming.

It is going to change the world.

You better get ready.

  • silas dogood

    Another way to envision our national debt: Imagine a ten-ton dump-truck slightly over-loaded with 11 tons of $100-dollar bills. Now imagine a line of those loaded dump-trucks, (200 to the mile), SEVENTY-FIVE miles long….that’s our national debt!

    • Stanley Mulaik

      Thats our money in the world economy. But really, there is no debt. The debt is a myth, an urban legend, believed by lots of people because they think Federal finance is like household, or business or state or local government finance. If they would look at the details of what happens when the government deficit spends and traced the path of all the securities that constitute this debt to their final resting place at the Federal Reserve Bank, they will see that the Fed (as it is called) has automatically and implicitly redeemed the debt obligations of those securities when it bought them in the very act of buying them as a government agency of the United States.

  • skdjflawqer

    chase kirby is a sexy beast

  • hunter savage

    the black hole will kill use all

  • Al King

    How about if we get all of the politicians to stop with the insurance programs they have and get what we have, stop getting their high pay for doing nothing, and when they retire they get social security like we the tax payers get. All of them, no mater if they are Republican or Demarcate, just want to go out and tell us what we want to hear just to get re-elected, bash the other parity, and say see how great we are? At one time as far as I can remember, when they ran for election, they would bash each other a little, get elected, then work together for the betterment of ALL OF US. Now it seems that all they want to do is what is best for them,and the business and rich people that got them re-elected. If any of them are serious about their job, have them learn to work together for for all of us like they were elected to do. Maybe if we fire ALL OF THEM, and get a NEW start with honest people, we can bring this great country back again. May God help us all.

    • Stanley Mulaik

      Well, this do-nothing Congress certainly ought to take a dock in pay.

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  • Daniel

    It will never be paid off as long as our government is out for themselves. Democrats vote for debt and then Republicans vote for debt. Everytime they raise the debt ceiling they are voting for more debt. Here is a tough idea, BALANCE THE BUDGET. No more loans , operate within our means, have a sustainable energy policy, End entitlement programs that have the least impact first and then scale back the bigger ones. PASS A BALANCED BUDGET AMMENDMENT that is tied to the politicians future. Our own future depends on it.

    • Stanley Mulaik

      Balanced budgets aren’t the answer. You can have inflation or depression with a balanced budget. That is because balanced budgets alone do not balance off against high exports bringing in much money or high imports taking lots of money out of the nation. You need to balance all these things so that people’s savings and incomes are increasing and there is full employment, and you have stable prices.

  • http://HTML Jerry Steele

    There IS a way out of the debt crisis that we are in right now, and at the same time end unemployment and the homeless in America, it’s just a matter of procedure. Quit being fixated on the problems and look to the obvious answer. I won’t mention it in this, I don’t need the problems it would invite

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  • Templar8

    It looks like some people still think this debt is going to be paid off. Of course it isn’t. It isn’t possible. It would be like me owing $3B. Yeah, I would owe it, but would I pay it back? Could I pay it back?
    It would take me longer than the US paying back the $15T back at $150B a year (100years-at 0% interest.) That works out to $410M per day. Yeah, like that’s going to happen.
    You know; maybe Obama and his dems are really smart. Since the debt isn’t going to be paid back, why not run it up? As long as there are fools who will lend you the money, just take it. Defauly on $15T or $30T or $50T. What’s the difference?

    • Stanley Mulaik

      Don’t worry, it’s already been paid off by something/somebody that has powers to create unlimited amounts of money out of thin air, the Federal Reserve Bank. The problem is that the myth of the national debt is so strongly held, even rational and seemingly knowledgeable persons believe it. But they aren’t looking closely at how the so-called debt at the Fed was formed. And they didn’t have the ideas of fiat money to make them look at things in a different framework. Those ideas are given by Modern Monetary theory, which is the theory of fiat money and how it works and should be managed to attain full employment and avoid inflation while having stable prices. Another interesting book on this is Ellen Brown’s “The Web of Debt”. She gets everything right, except she fails to see that there is no debt once the Federal Reserve buys the Treasury securities from banks that bought these securities from the Treasury. The Federal Reserve is a governmental agency. Their FAQ says so. Any governmental agency that can buy these Treasury securities, can redeem them. The Fed can do it because these securities are often for millions and billions of dollars, and the Fed can create any amount of money out of nothing to buy them. But that is the power of a fiat money system. It’s only limitation is that if you create too much money chasing goods and services, prices will rise and you will have inflation. Modern monetary theory explains how there are ways to control inflation: raise taxes, cut spending, especially deficit spending, sell government bonds and securities, encourage imports, encourage savings –i.e. do whatever takes money out of active circulation. But during a depression or recession, you need to do the opposite: lower taxes, increase spending, especially deficit spending, buy back bonds and securities, discourage imports with tariffs and higher interest and import taxes, lower interest on savings.

    • pointman pete

      china today said we were at the end of the road if you cant borrow you got to print.

  • Bankruptcy

    You can not SPEND your way OUT of debt! No matter how they like to dress it up, it will never happen.
    There is so much misinformation, and this is down to the strange-hold on mass media.
    If truthful. unbiased information would reach the masses, things would be different.
    Unfortunately, it seems the masses don’t want to spend the time researching online, and will wait in their armchairs until we spoon feed it to them!

    • Stanley Mulaik

      That is true, but we really don’t have a debt once you look at who is supposedly holding it and understand how they got it.

  • Kristian Freeby

    Hello guys,this problem is just horrible i live in holland en the ipod touch is nog here jet.i was wondering if the shipment to holland also have bad displays, do you have any idea ??because when you buy a device of 400,- you just expect it to work properly!

    • Stanley Mulaik

      Ask an Apple dealer or a wireless dealer that sells iPods in your country.

  • marion murphy

    I’ve read some pretty interesting propositions here. I think the government should start listening to the peoples’ ideas on how to solve the crisis. Why not set up a website where americans contribute their ideas and the government attempt the plausible suggestions. I mean after all it is a democracy and we are the ones who will suffer. It’s so impossible to get an audience with elected officials much less would they even consider pushing forward with such ideas because essentially they are sitting in the corner sucking their thumbs waiting for doomsday like the majority of the country. All while the other portion of the population is just plain ignorant to what is happening. As a mother it is very saddening to know what is to come for my daughters future and i know as an American I would love to follow other Americans in their pursuit to save the economy. I mean any attempt is better than none at all and obviously what ever the government is doing is not working.

    • T A Wood

      Unfortunately the only way Congress will listen to what we have to say is after we vote them out of office. The present Congress is protecting the rich and there is only one way to change it. We the people have the right to vote for elected officials we want to represent us.

    • Stanley Mulaik

      Well, start right here.

  • T A Wood

    Everyone says tax the rich, but this in itself will not produce enough money if there is still an Earned Income Credit (EIC) taking it away. The best thing would be a flat tax where everyone pays the same rate no matter what their income level. Get rid of 90% of IRS and no more giving low income families with numerous children thousands of dollars they never paid into the system.

    • Stanley Mulaik

      Taxing the rich will not get us out of the recession, if we don’t turn around and spend that tax money on creating jobs by funding infrastructure projects to be constructed by private firms. But more important is doing deficit spending (there is no national debt, folks; that’s a myth), because deficit spending leads to new money being created and spent into the economy. All money is, is tokens of debt in units of account (like dollars) between parties in the economy. They are like tickets which have no value in themselves but only have value for what they can buy. And they aren’t just coins, but paper, numbers in a spread sheet, certain kinds of electron configurations in computers and copper and glass wires. As tokens they must endure for some time so they can be traded back and forth. All of this is taught in Modern Monetary Theory. Look it up in the Web.

  • http://nunya bonquiqui

    we are very weird , we throw away alot of money except for re-using it instead of throwing it away we could make it pretty again and then use it for all this debt were in .

  • American greed

    Capitalism has spun way out of control…..Big companies like Walmart,WALL STREET, Macdonalds, Costco, Banks, GM, Chrysler, BP, EXXON-MOBILE, SHELL make billions and billions of dollars every year……AT the expense of making each middleclass citizen go more in debt each year. The rich get bailed out everytime they cry “help me”……Middleclass with no house, no jobs, left crying “help me” are left abandoned!!Everything is outsourced out to China…..and then they wonder why the unemployment is 12pct? Make all the RICH pay for the DEBT, TAX them 25pct additional in taxes for the “DEBT REPAYMENT FUND”. A revolution is coming soon, The RICH have killed this Country. Every working American will have to stop working for these companies to end this debt cycle!!

    • rondo

      Really? Capitalism is the problem.
      The only system that has ever produced a prosperous functioning economy in the history of human civilization is Capitolism!!

      The problem is very obvious if you learn how to apply logic and pragmattic thinking to the problems we face. A major part of the problems we face are due to short term thinking and using emotions instead of logic for solving problems. I could literally fix every major problem the US faces in a matter of months if were given the power.
      1. Use the military for OUR national security only!
      2. Cease all foreign trade and aid., this means weining off foreign oil.
      3. stop the ability to sue for monitary purpose. If you don’t have an invoice, you can’t sue for it!!
      4. Fix the criminal justice industry. Arizona has it right.
      5. Stop illegal immigration with the military, it is a national defense issue.
      6. get rid of minimum wage!
      7. Cancel the need for years of schooling to get liscenses. Put effort into making the testing process buletproof on producing qualified people. Schools will pop up everywhere at a fraction of the cost.
      That would be a giant leap in the right direction!!!

      • pointman pete

        we do need more homeland security, but we have such an arsenal that needs to be flexed far from our borders to be completely effective. if we had in vietnam what we have today, i think people would jump in line just to use some of this stuff.

    • Ciara

      Let’s go tax the corporations that actually produce jobs so that their profit margins suffer and they institute layoffs. That makes so much more sense. And furthermore I’m not rich but I do not think people that work hard for their money should have to bail out the entire system when we let illegal immigrants come in and take our jobs, welfare, etc. We give out way too much government aid to some people that are just to lazy to get jobs. I am a middle class citizen that works hard and it really upsets me to work in a school where 99% of the kids are on free and reduced lunch but have nicer clothing and shoes than me. There’s something wrong with that picture when my tax money is giving them a better lifestyle than what I can afford to lead.

  • noah toe

    we need to start frying up the politicians and serving them at all you can eat buffet’s along with lawyers, doctors,and every fat ceo bastard out there

  • noah toe

    we have to start frying up the politician’s and serving them up at all you can eat buffet’s the lawyers,doctors,dentists,and all the fat ceo scumbags out there have to go in the pot as well the poor are getting mighty, mighty hungry

  • noah toe

    eat the rich

  • john smith

    lets be honest, who really cares? no one so shut up and go watch disney because all of you are acting like babies. always remember and never forget, adults are just kids with money..

  • Jesus

    You are spot on..!!

  • Rey Rogelio G. Manalo, Jr.

    ~•~•~•~•~•~ ON NATIONAL DEBTS ~•~•~•~•~•~

    We True Christians are exempted from any National Debts since we have become ‘citizens of Heaven’ and no longer citizens of any nation as we can read in Philippians 3:20, NIV = “But our citizenship is in Heaven. And we eagerly await a Savior from there, the Lord Jesus Christ,”.

    Nationalities are just formalities written on paper. On Judgement Day, we will not be identified by our race, denomination, socio-economic status, nationality, occupation, etc. We will only be classified as either Followers or Non-Followers of God’s Will.

    Any National Debts therefore, does not apply on us True Christians. We are indebted only to the Lord. National Debts apply only on the citizens of those countries with National Debts. But with regards to taxation, True Christians are obliged to pay taxes to the Government as written in Romans 13:1-7 = “… This is also why you pay taxes, for the authorities are God’s servants, who give their full time to governing…” ((^_^)) ☻ ☺ ☻ ☺ ☻

    • Stanley Mulaik

      Fine, but that will not stop the Federal government from hauling you before a court and having you sentenced to jail if you do not obey its laws or pay its taxes. And Christ’s advice is realistic advice for anyone who wants to live in heaven on earth.

  • Daddy West

    i dont like it

  • Nuk

    Nothing is stopping all the people who think taxes must be raised ,from voluntarily sending , say 50% of their own money to the IRS. Starting with all the rich 1 % Hollywood loud mouth hypocrites.

    • Stanley Mulaik

      It is saddening to read such uninformed comments. Where do you think money comes from? Heaven? No, the federal government creates it and spends it, and it eventually gets to you. You have to pay taxes with it. And it keeps track of your and others’ debt obligations in units of account (dollars). The Federal government does not get its money from anyone else, like you. It doesn’t need your taxes to create it or to spend it.

  • momma

    My dad always told me pay off the debt before you can say. I do not see how the US will get away with erasing some of this debt wihout raising taxes. Do I want to see a raise in taxes, of course not. I do however think that every taxpayer is going to have to put more in. I also think reducing spending is very important also. How can you spend money that this country obviously does not have. When I think about all the programs that care being cut, yeah, I think it sucks but if we can’t afford it, then we can’t afford it. Simple as that. Americans and politicians need to get their priorities straight. I have federal student loans that I will pay back. I do anticipate that I will be paying higher taxes. Yes people, we are in debt (a whole lot of debt). But I am willing to put myself out there and do what I need to so for this country. STOP WASTING MY MONEY ON THINGS THAT WE DO NOT NEED TO OPERATE!!! People need jobs to make money to pay back that debt. The US government needs to pay that debt back too. You can’t expect the standard of living that people became accustomed to to exist forever. I agree that if people are having to get back to the basics and pay for their needs and not their wants, the US government should do the same. It is almost like these people forgot ECONOMICS 101. Quit your belly aching and get to work on fixing our economy and putting people back to work. I learned a long time ago, if yu can’t aford me, then you can let me go. People that depend on government programs to survive should not have to and the US government should not make these people solely dependant on them to live. It is not right!

    • Stanley Mulaik

      Securities are IOU’s that promise to repay the owner of them for money it lent the government at some future date plus interest. The debt, so-called, was redeemed without taxes. It was redeemed by the Fed buying the securities from banks that got them from the government at the Treasury, using fiat money the Fed created out of thin air. It does this all the time. No taxpayer money is used. The Fed is the government, just as is the Treasury. This is not economics, but civics. And as for the rest of your complaint, do you think the government should not buy aircraft carriers with your money to help protect you? Do you think the government should not have built the Interstate Highways you ride on so conveniently? We can afford anything as long as there are raw materials, factories to use them to produce goods we want, and workers who want to work producing them. Where do you think your money comes from? Who makes it?

  • Stanley Mulaik

    There truly is no national debt at the Federal Reserve, which holds Treasury securities constituting the so-called “federal debt” and issued to fund deficit spending, a big part of the national debt. The reason is because the Fed (as it is called) bought the securities held initially by private parties who bought them from the Treasury at auction, using money it created out of thin air, new money. The Fed is an agent of the United States government, so it automatically has redeemed the debt by the act of buying these securities with money made out of nothing using Congressional powers delegated to it to create (coin) money. Thus the fear and terror that people have that the United States is going to collapse under crushing debt is myth and nonsense. This is all possible because we have a fiat money system where money is created by the sovereign national government and backed by nothing but the full faith and credit of the United States.

    • Etard

      “No national debt” , try telling that to the nation of Greece about now. What you’re saying may be true for INTERNAL debt, but what about EXTERNAL debt to other countries?

  • Stanley Mulaik

    You like most Americans think about the finances of the federal government using a false analogy. Our government’s finances are not like a household’s finances. A household has to get already existing money in order to spend. It has to seek a balanced budget. But the Federal government has a power no household, no business, no state or local government has: the power to create its own money and spend it. And if needs be it can spend unlimited amounts; only it shouldn’t be so wreckless. But what makes the Federal government different is that its money is fiat money, money designated by decree of Congress. It is not backed by anything, which makes it more flexible and under human control. Furthermore, as I show above, there is truly no national debt because the debt obligations of the securities constituting the debt at the Fed have all been redeemed to their previous owners by the very act of the Fed’s buying them from them as an agent of the United States government. Ask yourself: where does money come from?

    • Jason Merritt

      Nonsense! Debt is an obligation. We are giving our freedom to the federal reserve. Don’t think for a second that it won’t be collected in some way. Most likely it will be in the form of freedom or heavy taxes. There is no such thing as a free lunch as you are trying to convince everyone!

  • Stanley Mulaik

    There is no national debt. When Congress deficit-spends, Treasury issues securities to get money to cover the deficit. These securities are sold at public auction to large banks. This is a now a debt of the government to the banks. But wait, next the Federal Reserve buys these securities from the banks with fiat money it creates out of thin air using powers to create money delegated to it from Congress. The Federal Reserve is an agency of the United States government established by the Federal Reserve Act of 1913 as amendedl. That means the Fed, for the government, has redeemed the government’s debt in the very act of buying the securities from the banks. Since the national debt (so-called) is constituted by all the Treasury securities accumulated over the years by purchases of the Fed, this means none of these securities has a debt obligation of the United States to any private party. And the government doesn’t owe itself anything for any act it performs.

    • Douglas Lynn

      Really, so the trillions we owe to China, Japan and others do not have to ever be paid back and the $500 billion in interest charges for fiscal 2013 is imaginary?

  • Jeff

    what uninformed stuff. Look at us debt through history. Anywhere from 30 to 120 % of GDP. The CBO now has US debt flattening off at 80% of GDP this after a major recession and two wars. Crisis crisis, no its not. Debt will go down as GDP improves unless we are stupid enough to follow the advice of this blogger.

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