[Bucco]

Originally Posted by thetruth

Like you I am uncomfortable about it.

Last time I collected my courage to look, it is posted on the internet the national debt. The number was 22 Trillion dollars.
The number is the classic BIG LIE. You say it often enough and people THINK it makes sense. My personal comprehension is 14 million-the largest order I ever wrote. Twenty-two trillion is several large freight trains full of 100 dollar bills. I read somewhere it is 85,000 dollars for every man woman, child and puppy dog in the United States. Far as a national debt, relative to our gross domestic product, our claimed ability to pay the debt, Japan's debt is twice ours.

Who do we owe this incomprehensible sum to? Yet another issue, big lie, that people think they know. Most people would guess China. They would be wrong. Our largest creditor NATION is actually Japan-see above-their debt is higher than ours compared to GDP. More interesting, shocking, to me,
is that both Japan and China TOGETHER hold about 20% of the national debt. SOCIAL SECURITY holds over 40% of the national debt. HUH? We are borrowing from ourselves.

I have a pile of German Deutschmarks that belonged to my grandparents before WWII. Each bill is in denominations of millions of DM. They are worthless. You will find them list on ebay for like thirty five cents each. Even the current German government will not redeem them for anything.

Re: rate of return
Years ago I read that the US is one of only two or three countries that TAXES interest on savings. The Fed says their target for inflation is 2%. Based on history the chance of them reaching 2% inflation and holding it is zero. Assuming they do the impossible- at current treasury interest rate of about 2%,
you are actually LOOSING MONEY by buying them. That 2% interest? is taxable at the highest tax rate you pay. So you are getting 2% less ?????? 30%=1.4% net. You are in reality loosing .6% on your money.

Solution? I do not have one. Economic system that has been installed. Since a far greater number of people owe rahter than save, our system takes form those who save and gives to those who owe. Simple explanation as to why the US has one of the lowest savings rates in the world.

I believe the national debt/deficit to be te single largest threat to our country.