posted on Nov, 24 2011 @ 04:01 AM
reply to post by jaxnmarko
If you look at the US federal budget, you'll see the biggest vaccum in our budget is entitlements.
Unlike defense spending, social security, welfare, etc. does not help prop up sectors of our economy. About half of the country doen't pay taxes and
that same half draws some form of aid from the government.
That is a huge blackhole from which nothing returns. Even worse, its steadily growing and eventually will consume the entire US budget.
That is what happened in Greece and is happening in Italy and Spain.
Now as to where we borrow most of our money? We borrow most of it from the Federal Reserve, US insurance companies, US investment companies, etc. We
have around $15 trillion in debt and more than 2/3 of it is to US entities. The Federal Reserve, the largest US debt holder, has around 6 times the
debt China holds and about $2 trillion more than all foreign debt combined. It should also be noted that the foreign debt the US holds from other
nations is at least 4 times higher than what we owe the entire world. The planet owes us far more than we owe it.