Tuesday, September 6, 2011
How're we gonna pay it back????
The phony debt crisis facing the United States is kept alive by this one, stupid, soundbite: "How are we gonna pay it back?"
The subtext, of course, is that the U.S. is deeply in debt to the tune of $14.5 trillion and there is no way we can ever pay it back. Indeed, even some great "minds" (NOT) like Jim Rogers have publicly said that the U.S. will never be able to pay back its debts.
Well guess what...not only can we "pay it back," but we've already paid it back four times over--THIS YEAR!!
That's right...the total amount of redemptions (public debt paid back) so far this fiscal year amounts to $58.8 TRILLION! That's trillion with a "T."
I am not making this up. Please see for yourself that number right off the Treasury's Daily Statement.
(All figures in millions $)
So we "paid back" nearly $59 trillion in the past 11 months without a hitch. The yield on 10-year Treasuries is below 2%. How did that happen? Simple...the Fed debits securities accounts and credits reserve accounts by whatever number it needs to. It's paid back by mere accounting entries. That's it. End of story. No digging up gold out of the ground, no mortgaging our future and best of all, no grandchildren involved. Please send to your Congressional representative.