DEBT

At one time or another, everyone losses some sleep over their debt. I think its part of the human experience in this day and age. In one way or another, everyone filters through their brain how much they owe and compares it to how much money they have or will have. This is then the basis for making buying/savings decisions.

Is anyone doing that for our country? Do you hear and then ignore mention of our national debt? Well, let me help you lose some sleep.

To do the things it wants to do, the things it thinks it has a right to do, the Federal Government has the right to borrow money. The standard method is to sell various debt instruments. These instruments include U.S. Savings Bonds, Treasury Bills, Treasury notes and bonds to name a few. The holders of these instruments are paid interest. I have a few saving bonds so I hold some of the National Debt (probably about $10 worth). About half of the debt is in intergovernmental holdings; of the other half of the debt is public debt, half is held in the U.S. (internal debt) and the balance by foreign investors (external debt). The largest holder of external debt is the Peoples Republic of China which holds about 24% of it. The Japanese are next with about 21%.

The sad facts about the debt are these. From 1776 to 2005, our country had run up debt of just under $8 trillion. In the first 150 days of the BHO administration, he and congress have added what is currently projected at another $8 trillion by the end of his first term. That will bring us over $16 trillion in 2012. Don't worry, it will be much worse than that.

As an aid in understanding the size of the debt, clocks and billboards have been put up around the country illustrating the size and rate of growth. The most famous one is on Times Square New York City. The newest is on my page. Now you can check it out every time you visit my blog. Notice how much each and every person owes.
:D