It’s Really Very Simple
February 25, 2026
Writes Bill Madden:
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The interest on government debt goes to the people and/or the institutions holding paperwork (Bills, Bonds, Notes, etc.) on the government debt. Therefore, the interest goes to the worlds richest families holding the debt instruments domestically in their family tax-free foundations and/or offshore accounts or indirectly as quarterly dividends from the interest-receiving corporations whose shares are held in their family tax-free foundations domestically and/or in their offshore accounts. Offshore accounts pay token taxes to the tax haven (Switzerland, Cayman Island, etc.) involved but almost nothing like they would be taxed in their home countries.
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In addition to paying very little taxes in their home and offshore account countries, many of the individuals collecting interest from government debt own shares in the large banks owning the central bank – in our case, the Federal Reserve Bank. They own banks and shares in many other large corporations and are what I refer to as the “major owners of Corporate America”. They profit from a central bank creating hundreds of billions of dollars from nothing and also from the large corporations profiting from government squandering. So, many people holding government debt make money both ways and pay very little taxes on any of it.
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See this
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The government issuing the debt via their central bank sells most of the debt to other countries, large corporations and very wealthy individuals. The proceeds from the sale of the debt are used to run the government and to pay interest on the debt. The money received by the central banks which created the debt from nothing when selling the debt is used to run the central banks and is also shared with the government issuing the debt according to some predetermined scheme. Debt is a money-maker for those owning the central banks and the issuing governments. In our case, it is also unconstitutional.
So. the interest always ends up with humans – either directly as a holder of the debt instrument or as a shareholder of an institution receiving the interest. Money always finds a human home.
This was an over-simplification. It is important, however, to realize that we, the people, owe the national debt to our richest families owning banks that have created the money (fiat currency, actually) from nothing!
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The Best of Llewellyn H. Rockwell, Jr.
Llewellyn H. Rockwell, Jr., former editorial assistant to Ludwig von Mises and congressional chief of staff to Ron Paul, is founder and chairman of the Mises Institute, executor for the estate of Murray N. Rothbard, and editor of LewRockwell.com. He is the author of Against the State and Against the Left. Follow him on Facebook and Twitter.
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