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The dumping ground for US debt

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posted on Jun, 9 2012 @ 06:57 AM
Every other day we hear that the US is raising finance through means of auctioning off government bonds or US Treasury bills. I have always been interested in who exactly buying up all of this debt.

I like many of you have read or heard, either through the forums on this site or through the media that it is the Communist giant in the east that is devouring all of the debt. There are many theories as to why they would be doing this, one of them being that once they own the US financially they will then claim their pound of flesh so to speak.

I was obviously highly skeptical of these theories and decided to do a little research of my own and what i found was very interesting, well to me at least.

Firstly let me make it clear that China does not own most of US debt, in fact they only own about 1,132 Trillion USD. Even though that is a large amount it is only seven percent of the total 16,4 Trillion Dollar debt. Actually the amount of debt that china owns has actually decreased from 1,173 Trillion in 2011 which was an all time high.

So that begs the question, Who owns the rest?

The answer: The American people do!

Taking a look at the chart above you will notice that the two largest slices of the debt pie are shared almost equally between the people and government. Now if you are anything like me, you are wondering how is it possible that the government owes its self 31,2 percent of 16,4 Trillion Dollars. And if that is the case why not just write off the debt that it owes its self.

The reason that this cannot be done it because that so called government money is actually tax payers money that was allocated to the social security, unemployment and medicare trust funds. This means that the US government has auctioned 6,32 Trillion dollars of bad debt off to you via bonds or Treasury bills without you even knowing about it. The system that you now rely on to support you during unemployment, illness and old age has become a pit of toxic securities. I say toxic because i for one cannot see how it will ever be possible for the government to repay all of that debt.

In order to keep the war machine and corporate racket running smoothly, more and more money will have to be borrowed and more toxic securities issued. It is safe to say that these funds will be the target of this borrowing in the future which ultimately means higher taxes and lower benefits until a point is reached where you are paying for benefit system that you will not benefit from.

The next time one of these government bond or treasury bill auction is taking place, keep this in mind because most likely a third of all that debt that is being auctioned off is being paid for with your blood sweat and tears.

More information can be found through the links below!

Mods please feel free to move this post if i have posted in the wrong forum.

Yahoo Finance
The American
Social Security Official Website
Treasury Bulletin

posted on Jun, 9 2012 @ 07:10 AM
investors on wall street mainly.

Some are other countries investing, some are corporations, others are individual men and women throughout the world.

If I'm not mistaken, the FED owns quite a bit of us treasury bonds. I know banks own quite a few too,

course the FED creates the money lends it to the US at interest then causes the debt in the first place.

Ladies and gentlemen, this is how you give the power of a country to corporate america and the 1% of the population.

posted on Jun, 9 2012 @ 07:18 AM
That's the scheme i think in it all, when the Fed took away the gold as a backbone for the dollar and it was switched to.. oil. I'm not sure if the oil backing by the dollar was done back in 1913.

The Rothschilds owned England so the Feds now own America. How does this relate? Those bonds that they are issuing they know won't be turned in no time soon if at all. Yea, some of us might turn them in if we are hit with hard times or as a gift or something, but the real chunks of that money won't be turned in.

It's like we always comment on on ATS. Despite obviously running the red and not having a balanced book, the government is still spending money like a drunk person going shopping. They have plans on paying back that debt nor in cashing in any of those bonds.

It would be like us doing a money run at the bank, they'd stop ya cold.

posted on Jun, 10 2012 @ 04:59 AM
Japan has about $1 Trillion as well, a bit less than China with many other nations also involved. It is not just the US tax payers left picking up the pieces but much of the world with the ripples of the 2009 GFC indicting just how entrenched and widespread the problem is. The current US economic foundation is pretty much built on a black hole as the 'greed is good' approach has lead to a raping of government funds. This build up has been a long time in the making and the gravity of the situation is such that many cannot get out.

One quick solution to these kinds of massive debt problems in the past is to kill the provider of the loan, this mean the US government and the Fed in this case. With them out of the way, no more debt, easy. A more responsible solution would be something like the National Economic Security and Reformation Act, but there is just too much powerful corruption more commited to their personal intrests than the national intrests. Again the gravity of this black hole is sucking away responsibility and reason to continue war agendas and meglomanic aims.

A unifiyed world will arise in its own due course, with those pushing for it faster and wanting to be the ones in control it is destablising the situation as conflicts are resolved in a quick 'kill em all' fasion rather than with a more time costly responsible and logical solution.


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