What Is the National Debt?
by Bill Sardi
by Bill Sardi
I don't think Americans quite get what the national debt is.
It is collective debt.
It is said to be $10.6 trillion presently. At $37,000 per person, that is about $111,000 per household of three. In reality, children and retirees aren't able to pay this debt down, so the full $111,000 is on the back of the primary wage earner.
Now imagine the government issued you a credit card where government stealthily places transactions on your card, totaling the above amount. (Or, imagine you had a family credit card stashed in a drawer and you suddenly discovered you owe $111,000 on it.) You would faint!
Who racked up these charges, you would ask?
Now interest must be paid on this collective debt. Let's say conservatively, 4% per year. That would be $4,400 per year in interest payments per household of 3 on debt of $111,000, or $366 per month. That becomes your household portion of the federal tax bill for the year.
The problem is that the principal never seems to get paid down on the national debt (Clinton did it for a short while).
It's now easy to see why the banksters pled with government to shift their debts onto the public ledger.
Let's say there is $3 trillion of debt by the banksters. If they shift it off on the public, that only represents $10,000 of additional debt per person (300 million population), or $30,000 additional debt per household of 3.
Again, the public doesn't have to pay the principal on this debt, only the perpetual interest. So an additional $30,000 of debt X 4% interest = $1200 a year in additional interest (tax) payments.
Many debt-ridden American companies are now reaching their day of reckoning. Many American individuals are reaching their day of reckoning, when they can't make interest-only payments on their mortgage. And when will the day of reckoning occur for our country? It never seems to occur because we simply print more money (legal counterfeiting).
The national debt is owed to many, including foreign governments, investment groups, and so on. But one thing I don't understand is that the national debt is said to amount to $10.6 trillion before the federal government apparently came up with hundreds of billions to trillions more out of thin air in the recent bailouts. They didn't loan this bailout money from anybody. Where did it come from? It appears to be fiat money, printed into existence. Does this pretend-money then get added to the national debt? Do we pay interest (taxes) on this imaginary money? Don't know, and don't know anybody who can answer this question. It's all part of the secrecy of government.
December 22, 2008
Bill Sardi [send him mail] is a frequent writer on health and political topics. His health writings can be found at www.naturalhealthlibrarian.com. He is the author of You Don't Have To Be Afraid Of Cancer Anymore.
Copyright © 2008 Bill Sardi Word of Knowledge Agency, San Dimas, California. This article has been written exclusively for www.LewRockwell.com and other parties who wish to refer to it should request permission to link rather than posting at other URLs.