Intragovernmental Debt Forgiveness?

"Intragovernmental debt holdings represent balances of Treasury securities held by over 230 individual federal government accounts with either the authority or the requirement to invest excess receipts in special US Treasury securities that are guaranteed for principal and interest by the full faith and credit of the US Government". It continues.. "The majority of intragovernmental debt holdings are Government Account Series (GAS) securities. GAS securities consist of par value securities and market-based securities, with terms ranging from on demand to 30 years."

www.davemanuel.com...

As some people put it, it is money the government owes itself. The author in the article below seems to think that the intragovernmental debt can be forgiven or blown up.

So the $4 trillion difference between the real national debt and the disgusting national debt is the amount of money that we had but we spent on the wrong things. Let me explain why the $4 trillion has no real significance.

The $4 trillion consists primarily of valueless trust funds. There is no pot of gold. There is no stack of bills—just worthless scraps of paper. If I were elected president, my first act would be to direct my Treasury Secretary to pile up the IOUs in the trust funds on the White House lawn, and blow them up like a modern-day Disco Demolition Night.

www.ldjackson.net...


The US has a 14 plus TRILLION dollar debt.

www.treasurydirect.gov...

www.federalbudget.com...

This the gross amount that includes what is borrowed from the social security trust fund among a few others. We all know that the trust fund is just a bunch of IOU's.

For those not familiar with how the trust fund works, here is an easy story to show how it works. Some call it a Ponzi scheme.



He further states that the trust fund has no bearings on the governments ability to pay benefits such as social security.

To look at it from a different angle, Congress could double the social security withholding rate. The trust fund would continue to grow for the rest of our history, and not a penny would ever be paid off. Conversely, they could eliminate payroll taxes, and the trust fund would be gone in a matter of years. Either way, it would have nothing to do with whether the government could afford to pay social security benefits, which is why I say it is an irrlevant accounting fiction.

That’s why the social security trust fund is lcassified as “intragovernmental debt,” because the government borrowed from itself.

www.ldjackson.net...

Could this be a way for Congress to lower the National Debt?
Can intragovermental holdings be forgiven and if so what consequences, if any, would there be?

the government has the power to tax,borrow,print money,treasuries, and has credit.

that is an enormous power they have and yet they can not live within their means

so what is their solution?

spend more
tax more
print more
borrow more.

they have stolen from social security and now are raiding other government funds.

the only way to stop the governments stupidity is to end it and place restrictions on it but fat chance that will ever happen.

even if by some miracle the government could get out of debt they would go right back into it.

stupid is and stupid does and the us government is the epitomy of that statement.

were screwed.

reply to post by neo96

so what is their solution?

The million dollar question. A part of me keep saying that they have a plan to solve the problem and that is why they aren't so concerned with the debt.

What I don't get is that we pay the government FICA taxes to go into the trust accounts. They use the money for general purpose and then want us to repay, with interest, the amount they misspent.

Go figure.

This seems like an excellent opportunity to point out how little the Government is even willing to tell the public about the true nature of the crisis we face. 14 Trillion sounds like it might even be possible to pay off when you consider annual revenues of a couple trillion into the Government coffers. What left me speechless here recently was that the Government had apparently, for the first time, acknowledged that interest was actually a part of the building debt to pay off.

I'd really encourage anyone who doesn't fully understand how Compound interest works, to become familiar with it. I learned all about it by Dave Ramsey's financial radio show and how it can work to make a middle class person quite wealthy over a lifetime. In this case, it makes 14 trillion, with annual compounding interest, so far beyond what can ever be paid off, it's not even worth talking about. The addition of over 70 trillion MORE in SS, Medicare/Medicaid and Pension liabilities is just more monopoly money to laugh over...as the debt crisis is already beyond repair long before those numbers even hit the spreadsheet.

Total financial collapse is no longer a question. It MIGHT....JUST MIGHT...have been avoided before Bush began the insane policies in 2006. However, with almost 2 full years of Bush playing like a socialist, and 2 additional years of a REAL socialist in the White House...well....it's just not possible to reverse this anymore, even in theory. When the rest of the world finally comes to that rather self-evident conclusion, the crash will come hard and fast.

reply to post by jam321


their plan is: keep the status quo and your money is not yours its the governments.