The National Debt:
Well, here we go. Who am I to
address such a monumental, incomprehensible problem? I’m
nobody when it comes to this issue. But,
nonetheless, I have my thoughts and forecasts (for what it’s worth).
The National Debt is at 30 trillion dollars and growing. If you’re like most of us, you might be
thinking that ‘we’ (whoever that is) will, at some point, need to pay the money back. OK, currently that's about $300,000 for every American tax payer.
To whom do we owe that money? Until recently, I thought the debt was
principally owed to other countries like China, Japan, etc. However, interestingly, most of it is owed to
the Social Security System (yes, our Social Security), as well as numerous American
pension plans. Well, isn’t that
interesting.
If it had been China or some other country, we could
possibly (out of necessity) say: ‘We’re not going to pay you back; and you
can’t make us.’ But, that’s not going to
work. Really too childish and could cause international hard-feelings. Therefore, let's face it, American citizens are principally
on the hook to pay it back… one way or another.
Of note: The last
President to decrease the National Debt was Calvin Coolidge 1923-1929. Since 1929 the National Debt has increased exponentially. The interest owed on the debt alone is shocking, overwhelming and nearly incomprehensible.
So, what do I think will happen? The National Debt, let’s face it, will never
be paid off – except and unless the US Treasury prints enough valueless paper
money to pay it down. Of course, this
will cause uncontrollable inflation. Welcome
to Venezuela. Make sure you have a
wheelbarrow, to carry the money required, if you’re planning on going to the
market.
Other possible option:
cataclysmic events that we do not even want to think about.
Perhaps the most likely, the Federal Government will simply
‘welch’ on any pay back to those pension plans to include the Social Security
System. What does that mean? Ten cents on the dollar? Your guess is as good as mine.
Some might opine that, 'It's not my problem... I will be gone by then.' Referring to when the debt comes due.. one way or another. Yes, I kind of understand where you're coming from. However, before you exit stage left, why don't you sit down and explain to your grandchildren how you're leaving them holding the check. Something to remember about you - so to speak.
True Nelson
