When the federal government first entered into significant borrowing, the debt was excused under the pretext that “we owe it to ourselves”. I.e., the feds borrowed money from the American people and would have to repay the debt (and interest) to the American people. America would not be significantly hurt by these debts.
The idea that “we owe it to ourselves” is a fairly reasonable argument because it presupposes that the American people could control the magnitude of the federal government’s debt by their willingness or reluctance to lend to the federal government.
So long as the feds borrowed only from Americans, If Americans didn’t consent to lend more money to the feds, the feds would have to operate “hand to mouth” based strictly on its annual revenues. Americans could compel the gov-co to “balance the budget” by simply refusing to lend it more money.
Over time, the American people did, in fact, become increasingly unwilling or unable to lend as much money to the feds as the feds wanted. However, rather than reduce the size of government and government expenses by living within the limits of its annual revenues, the feds increasingly borrowed from foreign lenders. Now, we no longer owe the national debt strictly to “ourselves”. The debt is no longer harmless. Instead, we owe much of that debt and the interest on the debt to foreigners. As a result, foreigners will be enriched by our interest payments and America will be thereby diminished and impoverished.
According to the attached video, last year the feds spent over $400 billion on interest on the national debt. That’s $1,300 in debt for every man, woman and child in this country. A family of four is effectively paying over $5,000 a year in interest on the national debt. Where would our economy be if each family of four had an “extra” $5,000 to spend each year?
Financial stress is the single biggest cause for divorce. How many families of four have suffered divorce that might still be intact if they’d had an extra $5,000 per year?
Government’s “stimulus” or “quantitative easing” program is intended to inject several hundred billion dollars into the economy. If it weren’t for the $400 billion interest on the national debt, much of that stimulus program would be unnecessary. In fact, if it weren’t for the interest on the national debt, our national economy might still be fundamentally strong rather than technically bankrupt
America is being slowly destroyed by our federal government’s national debt.
The national debt is admitted to be $14 trillion and is actually at least $55 trillion. That debt is already far too great to ever be repaid. However, so long as gov-co can pay the interest on the debt, the illusion will persist that the debt principal can and will be repaid and that US gov-co’s debt instruments are “performing” and have value.
Soon, however, even the interest on the debt will grow too great to be paid. When that moment arrives, the national debt will be largely repudiated, economic chaos will ensue, followed by possible social collapse and/or political revolution.
Death through debt.