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DEBT

So Who Does the US Owe Most of That $16 Trillion to?

Hint: it isn't China

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by Mary Noble

Senior Editor t

Image: Politix

The national debt has just surged past the $16 trillion mark, and our mammoth debt to China is now a political meme. Mitt Romney referenced it in his convention speech: "Does the America we want borrow a trillion dollars from China?"

And being in hock to China is Jay Leno's favorite political joke. Exhibit A: "We have American athletes in uniforms made in China, wearing French berets. I don't know if we're supposed to compete, ask for a loan or surrender." But in fact less that 8% of our debt is owed to China. So who do we owe all that money to?

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Should we be more concerned about debt to ourselves than debt to China?

Comments (view in Forum)

  • Post Removed by Moderators
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    Fishbone345
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    @MongoAPillager Somewhere in another thread I was commenting on with someone, I mentioned that low figures on the deficit from war was 1.3 trillion. I've noticed that as I search on the figure, that is the extreme low end of guesses. Some people put it pretty high.
    I can say this, War is expensive. We should probably try to live within our means.
  • Your_Name_Here
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    The objective of government has become the preservation and advancement of government over and above all else. I own and manage a number of businesses and if I was to propose the absurd benefits and unfunded pensions the government has been treating itself to for countless years I would immediately be sent out for drug testing.

    I grew up hearing "Twenty years and I can retire!" from government employees. Why 20 or 30 and retire? How is it possible to fund that type of retirement without mortgaging your future? Why is there such disparity between public and private sector?
  • u
    norezen
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    Its the entitlement culture of the baby-boomers and the politicians that represent them. That alone has caused irreparable damage to our economy.
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    IMAQT
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    @norezen "Its the entitlement culture of the baby-boomers" You mean us boomers that have been financing the bulk of our government over the last 40 years?
  • u
    norezen
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    @IMAQT thats complete nonesense. You jerks set the country up with unsustainable power sources, unsustainable retirement benefits, and unsustainable healthcare. Your generation ruined this country.
  • u
    norezen
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    @IMAQT And another thing. While we the younger-than-baby-boomer generations slave away at higher efficiency rates that your generation could even imagine... The baby boomer ceo's of the companies we work for are taking in unprecedented ratio of salary compared to people who work for them. You greedy, entitlement jerks.
  • Your_Name_Here
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    @norezen Very good points BUT... how do we, the people make the necessary changes? One issue is that the government enters into contracts with labor organizations thus diluting the power given to it by the people. Usually the only way to break such a contract is bankruptcy or the "absolute authority" of the government. 16 trill in my opinion is about a bankrupt as one can get. Yeah, in the 10 seconds it took me to write that last sentence the debt interest could have retired me nicely! This really has to go to popular vote because nobody running for office has the guts to say this must come to an end. You cannot fund compounding future payments out of current income.
  • View all 26 replies >
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    AceLuby
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    @artjeb Taxes are at the lowest they have ever been and Obama lowered them even further. And it's not like you're getting nothing in return, you do like police, fire, roads, and schools, right?
  • u
    Kellso
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    @AceLuby How do I figure? Where do you think the trillions of dollars has gone that was paid into the 'social security bank' over the many years???
  • u
    IMAQT
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    “We borrow from Europe to defend Europe. We borrow from the Gulf states to defend the Gulf states. We borrow from Japan to defend Japan. Is it not a symptom of senility to be borrowing from the world so we can defend the world?” Pat Buchanan
  • u
    norezen
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    I agree with that quote and approve of you posting it. Defense budget can be cut and we can still defend our country. As long as we don't get anymore president bush's.
  • u
    norezen
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    I find this part most interesting:

    The answer is: ourselves. Two thirds of that $16 trillion is borrowed from the US government and from "American investors and future retirees, through the Social Security Trust Fund and pension plans," according to a Fox News report.

    When those benefits start getting paid, we are gonna have to print A LOT of money. Its gonna be hard-to-control inflation. I'm pretty sure the fed will be able to manage most of it, but a smart investor would move some money to the loonie or other non-euro currency. At least until the dust settles.
  • u
    norezen
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    Oh and one other thing. Some lawmaker got slammed for calling social security a ponzi scheme. IT IS A PONZI SCHEME. They are taking in less money than they are paying out. Its the precise definition of a ponzi scheme.
  • o
    ibcingu
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    So, raise everyones taxes & contributions to Social Security & Medicare and --- problem solved. You want to live in this country -- pay for it. You don't want to contribute --- get out.
  • marine1
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    Here is the scary truth. these a**holes have been sticking it to the common folk for years and now it is all going to come home to roost. Just listen to them talk. trhey want to cut this change that and it will all be on the back of the working folks and the reason is simple, they stole from the fund over the years to pay for their pet programs and now they want us to pay for it. the choice in november is simple, vote for the thieves in office or vote for your childeren and grand children. Return NO incumbents to office.
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    IMAQT
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    "Return NO incumbents to office." Yep I agree with that, but unfortunately 90% will be still in office next year. And the reason is pretty simple, most voters think their guy is doing a good job, it is all the other reps that are the problem. I don't have much confidence in the voters of our country that know more about American Idol than how their reps vote and why I now support term limits. Guys like Robert Byrd was in office for 57 years. When I hear some of the outright stupid things that some politicians say, I wonder how in the heck do folks vote for this guy?
  • marine1
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    @IMAQT When 50% of the voting populous have become sedentary it leave little hope that any one will pay the attention that is required.
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    armed_liberal
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    During the Clinton administration surplus, there was talk about ending the 30 year T-Bill. That is when 30 year mortgages got pegged to the 10 year bond.

    Some public debt is good, and during a recession is not the time to balance the budget.
  • Toni
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    If politicians were concerned about this we would not be at 16 Trillion. They've kicked the can down the road, lied to the American people over and over again. We have to stop spending, reform entitlements, reduce the size of the Federal Government to turn the country around. That is a choice most administrations before now have been unwilling to tackle. Clearly, Obama wishes to continue to spend and increase government. So he is an unsuitable choice going forward. Question is will the electorate understand where we are at and get rid of him!
  • gammler
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    The fact that the bulk of US debt is internal doesn't negate the fact that it is debt and has to be serviced, no matter who the note holder is.
  • 1adam2
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    well if only we could eliminate, the third of the revenue that is consumed by the irs. we might get government spending, under control enough to pay it off.