Who exactly is our national debt owed to?

Our government borrows money by issuing bonds and securities backed by the “full faith and credit of the US government.” US bonds and securities have historically been a very safe place to invest and we have not had trouble finding lenders so far. Should the dollar weaken and become less stable foreign lenders could demand higher returns on their investments which would add a great deal to the legacy costs of our debt.

Not entirely true. The leaders we elect have different priorities and philosophies about deficits and debt. President George W Bush increased the debt accumulated in the previous 224 years by 7.1% his first term and by 20% in his second. His father President George H W Bush increased it by 15% his only term and President Reagan increased the debt by 11% his first term and 9% his second term. President Carter reduced the debt by 3.3% in his term as president and President Clinton reduced the debt by 0.7% and 9% his two terms. The people we elect has a great deal to do with the debt.

So basically you guys don’t know either. The total amount of every bond floating around could not possible total $1 billion. So once again, who exactly do we owe this money to?

Why couldn’t the total value be $trillions? It’s easy to issue bonds.

It is very easy to issue bonds, of all the people I know that have had a bond the grand total would be around $500. Now unless there are bonds out there worth millions of dollars it is physically impossible to reach trillions.

The goverment issues T-bills to raise funds to spend. The majority of T-bills are owned by issurance compainies an believe it or not CHINA. Thisnk about it if you shop at Walmart.

Yes I said they have everything to do with the debt we are in.

Wal mart could be the death of this country. For some reason I really feel the need to understand this. So when T bills are issued, the government recieves actual cash? With the for gone idea they are actually gonna pay them back?

Investment houses can buy T bills by the $millions. I assume there is a different system for issuing bonds and securities to foreign governments but the principal is the same. I saw a special on Boeing selling their 777 aircraft. Buying, financing, and paying for items that expensive requires a team of accountants. No doubt large scale purchases of US securities do as well.

The government does pay interest and principal back on its securities but of course we keep borrowing more. The way things are going now we are expected to be paying $1 trillion/year in interest on our debt by the year 2020 which will be 17% of federal spending. It is arguable if our move from a industrial economy to a service/information economy is sustainable. We no longer make much; we merely skim a few percent every time money changes hands which means whenever an economic downturn causes spending to slow down we are hit particularly hard. I’ve read arguments both ways that the evolution to a service/information economy is natural and desirable and the opposite that it is part of a downward spiral to our ruin.

We owe billions to China, which is why if they come after us some time in the future they will crush us. Our country owes so much, its shameful and pathetic.

The majority of China’s resources are, and will always be, invested in trying to manage its burgeoning population. China is becoming a regional power and will have some global influence, but the country’s internal problems are massive and are underreported by the global media. China’s economy also depends heavily on trade with the United States and other consumer markets.

The money is owed to whomever buys government securities… treasury bills. Private individuals can purchase them but the interest accrued from treasury notes is typically on par with the inflation rate of the Federal Reserve notes used to purchase them… around 3% annually… not to mention the fact that the “full faith and credit of the US government” means that any American citizen who purchases treasury notes is also partially responsible for backing them through increased taxation.

China… Japan… and other states hold a substantial amount of treasury bills. The Federal Reserve bank buys treasury bills all of the time. It has the unique privilege of creating its own capital with which to buy treasury bills. Whenever the Fed buys treasury bills… it also creates the ability through fractional reserve lending policies… to create more of its currency to loan out. So if you are asking who we are truly indebted to… it would be the Federal Reserve bank. We are forced by fiat to accept the notes it issues… because they are worthless. It is a debt based economy. Due to the interest rates that accompany the creation of any Federal Reserve note… it is physically impossible to repay the debt owed to the Federal Reserve. The Federal Reserve facilitated the purchase of World War I liberty bonds that would eventually set the precedent for the issuance of Treasury bills.

Mike Rivero compiled a concise but comprehensive history of central banking in the U.S. from the Currency Act under King George through the recent foreclosure frauds. He makes a good argument to end the Federal Reserve.

http://funadvice.com/r/14mdrria7s0

Your point?

They won’t “come after” you.