How Bad Is Our National Debt

I guess to get an idea of that BIG number, one has to consider it in terms of much smaller figures first.

Using myself as an example, I make about $100K/year.

That means after 10 years of labor I bring home about a million dollars. Not too shabby, right?

But that's ten years and not my youthful years to be sure. Those were nowhere near what I'm earning today: 40 to 50. And, 50 to 60.

But for me to earn a single billion dollars, one would have to multiply that known 10 years by one-thousand. That's right. It would take me ten thousand years to earn one billion dollars.

And to pay off the national debt? Ten thousand times thirty thousand ... or three hundred million years.

Ain't math great?

a reply to: Deplorable

Not that I have a stake in your country, but if your government is paying off $300 billion then that is just chipping away at it.

a reply to: Deplorable

National debt is a farce.

For some reason, there is this perception that we are actually borrowing something tangible that we have to repay.

This is false in most cases.

All these "trillions" considered debt is simply the Federal Reserve Increasing the money supply from nothing. Their only service was typing numbers into an account saying we have more dollars to spend.

These new dollars are simply diluting the current dollar supply (inflation).

Foreign debt in most cases is foreign countries say China, printing more of their currency from thin air and purchasing bonds / treasuries with their newly created money.

WE OWE NOTHING

Our Grandchildren's future is not being stolen because what is their to pay back? There is nothing to pay back because we immediately pay through inflation. They simply inflated the money supply. They didn't loan or provide anything tangible, no gold reserves changed hands, not even paper moved from one place to another, they simply magic more money into existence with a keyboard and account numbers.

The national debt is a term used for future theft on the excuse we have to pay the Federal Reserve back for creating more money from nothing.

We owe the Federal Reserve entity Trillions... .Really? Did they have Trillions of earned or secured money or assets to actually loan? No they didn't. They again just created it out of thin air, thus losing or providing nothing but "inflation management".

In other words "you can't get blood from a stone".

Inflation simply erases debt.

At this rate, assuming my income can match infusion (it can't though) I could pay off two thirty year mortgages in less than five years.

If we reach a tipping point, I might be able to erase my lifetime debt over a few pounds of rice and beans.

It's all an illusion.

If and When (more like when) the U.S. Gov starts defaulting on Treasury Issues, then we will start seeing Gov seizures and asset transfers. Wait for it. 🤐☠️🤐

a reply to: Deplorable

National or international debt doesn't mean anything, it's just a fancy complicated way of saying how big an economy has grown without collapsing on itself. A measurement of sorts, because that's all 'money' really is, a measurement of wealth.

Think of it this way. A giant building is being built (National debt) the more debt you take on and pay off the more of this building you own or are expanding as a project. Everyone in theory is working on this building within a nation.

That's how I see anyways...

originally posted by: infolurker
a reply to: Deplorable

National debt is a farce.

For some reason, there is this perception that we are actually borrowing something tangible that we have to repay.

This is false in most cases.

All these "trillions" considered debt is simply the Federal Reserve Increasing the money supply from nothing. Their only service was typing numbers into an account saying we have more dollars to spend.

These new dollars are simply diluting the current dollar supply (inflation).

Foreign debt in most cases is foreign countries say China, printing more of their currency from thin air and purchasing bonds / treasuries with their newly created money.

WE OWE NOTHING

Our Grandchildren's future is not being stolen because what is their to pay back? There is nothing to pay back because we immediately pay through inflation. They simply inflated the money supply. They didn't loan or provide anything tangible, no gold reserves changed hands, not even paper moved from one place to another, they simply magic more money into existence with a keyboard and account numbers.

The national debt is a term used for future theft on the excuse we have to pay the Federal Reserve back for creating more money from nothing.

We owe the Federal Reserve entity Trillions... .Really? Did they have Trillions of earned or secured money or assets to actually loan? No they didn't. They again just created it out of thin air, thus losing or providing nothing but "inflation management".

It consists of treasury bonds that are actually sold to individual people and/or corporations and stuff. They issue new bonds in order to pay off the old, and then try to pay a few outright to avoid issuing too many more.


So what you are saying is true whenever the Federal Reserve chooses to buy treasury bonds. I think it was around 2008 that they did it for the first time in history. It's a big deal for them to start doing that because it means money was printed to pay a bond. (If the bills are sold entirely to private citizens/corps then no new money is being printed.)

All through Corona, the Fed has been purchasing Tbill (Treasury bonds) and now they're planning to try and unload a few.

www.pgpf.org...

Trouble is, those bonds are sold at auction. Straight up free market. If nobody wants to buy them, then they end up having to issue them at a higher interest rate. They'll sell them at some rate. Naturally we hope to see them sell at the lowest rate possible.

If Tbills start selling at a high interest, that means the whole federal debt will start to be refinanced at a high interest rate. Most Tbills are only 5 or 10 years, so that's all the time it takes for the ENTIRE DEBT to refinance to a new interest rate.

a reply to: Deplorable

How bad? Awful! LINK

I like how on the upper right is a "Time Machine" where you can go back and see what it was in the past. Or forward to predict.

I don't think you understand how Alchemy works.

1. Take lead
2. Turn to gold
3. Profit

originally posted by: infolurker
a reply to: Deplorable

National debt is a farce.

For some reason, there is this perception that we are actually borrowing something tangible that we have to repay.

This is false in most cases.

All these "trillions" considered debt is simply the Federal Reserve Increasing the money supply from nothing. Their only service was typing numbers into an account saying we have more dollars to spend.

These new dollars are simply diluting the current dollar supply (inflation).

Foreign debt in most cases is foreign countries say China, printing more of their currency from thin air and purchasing bonds / treasuries with their newly created money.

WE OWE NOTHING

Our Grandchildren's future is not being stolen because what is their to pay back? There is nothing to pay back because we immediately pay through inflation. They simply inflated the money supply. They didn't loan or provide anything tangible, no gold reserves changed hands, not even paper moved from one place to another, they simply magic more money into existence with a keyboard and account numbers.

The national debt is a term used for future theft on the excuse we have to pay the Federal Reserve back for creating more money from nothing.

We owe the Federal Reserve entity Trillions... .Really? Did they have Trillions of earned or secured money or assets to actually loan? No they didn't. They again just created it out of thin air, thus losing or providing nothing but "inflation management".

Modern Monetary Theory aka "Money grows on trees" or "print, baby, print". If they can print as much money as they need to "pay" for all the stuff they want to spend it on, why do we need to pay taxes at all? Why can't we keep 100% of our hard earned money to spend as we see fit?

If you owe $100,000 to someone, then that is your problem.

But if you owe $100,000,000, then that’s really their problem.

a reply to: jarsue97

Because taxes perform 2 vital functions in the economy.

They remove money from the economy which allows new spending without creating inflation when there isn't sufficient capacity for the economy to expand.

They create demand for money so give it value.

originally posted by: xuenchen
If and When (more like when) the U.S. Gov starts defaulting on Treasury Issues, then we will start seeing Gov seizures and asset transfers. Wait for it. 🤐☠️🤐

Scary thought, but can they legally do so???

a reply to: Allaroundyou

Since when does the government care about legal ?
They just do what they want and tie you up in court for years till you are bankrupt .

a reply to: infolurker

So basically when it comes to a debt I must live by one set of rules and the government lives by another. Sad really.

originally posted by: Allaroundyou

originally posted by: xuenchen
If and When (more like when) the U.S. Gov starts defaulting on Treasury Issues, then we will start seeing Gov seizures and asset transfers. Wait for it. 🤐☠️🤐

Scary thought, but can they legally do so???

What happens when they get to the edge of default is the Federal Reserve buys the Tbills. (Or rather, prints money and buys the Tbills) That's why economists are predicting hyper inflation.

Most Tbills are paid by just issuing another one. You buy a $1000 t bill for say $950, then redeem it for $1000 a couple years later, and the gov simply issues another $1000 Tbill for $950, hands you the $950 and maybe $50 in tax money.

But mostly it's kind of like a snake eating its own tail.

a reply to: infolurker

Interesting. Have any websites to back up your assertions? I am interested in the topic. My internal logic says we cannot continue on this path BUT... we seem to continue down the path. So I am inclined to believe it is a way to game the system and you are correct. I know our finance people are incredibly savvy. I think this is why those in power continue to ignore the debt issue altogether. Perhaps it is a nonissue - at least for now.

Thanks for the post.


V

a reply to: infolurker

Wanna share some of what you're smokin'?

Somebody somewhere sometime will have to pay. The only people who believe that they're is such a thing as a free lunch are beggars. History bears witness to this, but then most folks theses days are bit well versed when it comes to history.

But you're right about one thing. Nobody is "borrowing" from anybody else. No, it's not borrowing; it's outright theft.