The National Debt... It's not funny anymore.

 

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