US DEBT: The Good, The Bad, the Ugly – AND The Solution

On the face of it, Dave Ramsey is the go-to king for helping people pull out of their personal debt crisis.   Typically it involves restructuring the current debt, forgiveness of some of the debt, and the creation of a revised budget.

But that type of approach is not as effective when it comes to the debt of a country, and what has now become the debt of the globe. They are not comparable as apples to apples.   In the Ramsey scenario – the typical analysis reveals the person/household is in a negative to assets and income. The US debt is typically compared to GDP, which is loosely defined as income – not assets. The GDP of the US currently stands at just over $22 trillion.

Global debt is estimated to be between $250-335 trillion.   Is it even possible to ever pay that amount of money, to be debt free, or even close? Is it even necessary?

The short answer – NO and NO.

The World Bank, the IMF, the UN, always suggest that wealthier countries simply forgive the debt of the poorer countries, particularly in Africa, so that they can borrow more money that they will never be able to repay.   As a result, those poor countries sell their assets whether it is land or the resources on/within the land.   Until they have nothing left to sell – and the creditor takes control of the country.   Which is similar to the micro-lending Ponzi schematic.

The IMF advocates for “voluntary sovereign debt buybacks’.   And cites corporations as a model example.  That too is a blah economics understanding.

Assuming the number that is dangled in the atmosphere is correct and the US debt is roughly $26 trillion, the US would have to sell something, given the available cash on hand is inadequate.   In order to sell anything, the US would need a buyer with cash on hand, or at least a sufficient portion to give the deal credence.   So you have to sweeten the deal.  How does that work?  Ask a businessman/woman.

Only 30% of the debt is foreign owned – $7.8 trillion. Of the foreign holdings, the two largest holders are: China which owns about $1 trillion and Japan $1.3 trillion.   The remainder is disproportionately lumped into retirement obligations including Social Security which is $2.9 trillion, military pensions, government pensions and Medicare which account for an additional $2.1 trillion. Much of these funds are pushed into the General Fund so that they can be disbursed for emergency use and invested for liquid gains. Which is why these moneys are not sitting in a proverbial bank account earning zero percent interest and doing nothing.  HELLO!

While there is no point in buying back treasuries that are not linked to retirement, if we simply wanted to buy back foreign debt that would only amount to selling assets worth $8 trillion (rounded).

What does the federal government own?

The government assets are divided between those above ground and those below ground. Above ground includes:   land, buildings, levees, dams and hydroelectric facilities. Nothing that we ‘want’ to sell. Below Ground includes:   mineral and oil rights and leaseholds.   The asset that would generate the most cash is oil and gas resources valued at roughly $128 trillion.

That means if we sold reserves valued at $8 trillion, we would only be shorting our asset reserve by 6%. Both China and Japan are oil poor. In 2019, Japans oil imports came predominantly from Saudi Arabia and UAE. The value of those imports to Japan totaled $130 billion in 2019.   The value of oil usage annually in China is roughly $150 billion.   That would give them a breakeven on the purchase of US reserves/debt exchange of roughly 8 years.

The internal debt for pensions and such is a constant flowchart.   In other words, an expanding workforce creates the wealth to support the annual debt load.   If you contract the workforce and their paycheck volume, then Houston – you have a problem.

Everything in this world is based on one core premise:   Expansion – more people. It is the reasoning behind the mass migration of refugee illegal immigrants into Europe.   Their expansion had become a negative growth with birth rates plummeting given abortion rates rising exponentially.   People wanted more money to hoard on themselves – and children sopped up that hoarding.   So birth rates dropped to such an extreme that the very core basis of continuation as an economy began a backpedal that gained speed!

Soros convinced Merkel that allowing massive migration would help that economic curve as these immigrants contributed to society and were productive.   Obviously, that was a lie, and as soon as the unchecked immigration flooded Germany, Soros declared that Merkel had made a ‘fatal mistake’.

Merkel’s legacy will be rife with ugly regard.

And so, the Shadow Ingrates discussed how they could destroy the global economy in the shortest span of time given all of Europe was already precariously in a recession.   And they devised a pandemic.

Locking down the global economy, this was their final arrow.   Their quiver was thus empty.   They believed they had won.   The EU caved, the respective governments wholly willing to support a further indebted destruction.

But there was – One Man.   President Trump.   And despite all our allies foaming against the US, President Trump, America, and The People, our President defied what NO OTHER government dared.

Make America Great is about realigning our economy with the people.   It is about NOT giving up.   It is about curbing our deficits so as to curb our debt.   And I believe, if we were left to our own resources under a Trump presidency – we would be An Economical Power House working For The People – instead of For the Corporate Cabal/Mafia.  

And THAT is what they fear – the most!

6 thoughts on “US DEBT: The Good, The Bad, the Ugly – AND The Solution

  1. Hi

    “Realigning our economy with the people”

    I’m not exactly understanding what is meant by that. Free economy? Doubtful that will ever exist again under this government.

    ” It is about curbing our deficits so as to curb our debt.”

    That looks problematic as well…

    Mr. Trump doesn’t seem to have a problem with huge deficits or ZIRP. He was very upset at Mr. Powell for not going to zero sooner. A 3.3 Trillion deficit for 2020 mainly due to the ridiculous government reaction to an alleged virus no more dangerous than the flu,,, if that. It will likely be higher next fiscal year as we don’t know what the big giveaways will be. The Republicans and Democrats are still one upping each other.

    There are still 30 million Americans plus out of work likely to increase due to additional lock downs, more bankruptcies, layoffs, etc. Hundreds of thousands businesses are closed many forever once the free money stops. Right now thousands of folks unemployment benefits are timing out. They will be removed from the database and the headline unemployment will be going down making the politicians shine.

    One has to conclude that the lock downs and restrictions were begun under Mr. Trumps watch. Much of the country is still locked down in one form or another under Mr. Trump,,, I cannot foresee Mr. Trump changing on Jan 20 2021.

    I have to add that Mr. Biden is not much of a choice either as Mz. Harris will be running the show if he/she are installed.
    None on the ballot would run an administration in a manner consistent with the constitution. Hell,,, Americans would probably riot if they did. (lol)

    regards.

    • A. Realigning our economy with the people references a government that works FOR the people instead of FOR the government which is the Deep State we are now fighting. B. “President” Trump – is simple respect when referencing and quite disrespectful – as in AOC style – to state “Mr.”. C. The government reaction to the Pandemic was initiated under local and state governments – not President Trump. D. Destruction of cities and chaos was instituted and upheld by local and state governments – not President Trump. E. President Trump’s ‘watch’? That would be like saying Lincoln was personally responsible for the Civil War – or – Obama was personally responsible for H1N1 – or – Syria – or Ukraine! And I doubt you would go that far… F. You apparently don’t understand the basic Constitutional sovereignty of each state – and their responsibilities G. There have been instituted lawsuits against governors and mayors to that regard wherein THEY are held responsible for the unConstitutional lockdowns. H. You are obviously NOT a chess player. President Trump gave states their duly Constitutional authority to act upon CoVid as they deemed. Thus setting them up to fail or succeed depending on their response – which is why we are NOT now bailing out those states per the Pelosi hogwash Bill.
      This is NOT about CoVid and never was. It is about a RESET – and the threat President Trump became to the Deep State in fulfilling their Agenda.
      But of course – you know all that – and are simply trying to bait the facts with fiction…

      • Hi

        Quite a list for me. Yes Trump left it up to the States knowing most of those with democratic leadership would in fact lock down. It’s all quite political. He could have stopped it at will by simply invoking the commerce clause as the Feds always do when interfering in States business only this time commerce was and still is in chaos. The States locking down healthy citizens is an abrogation of their constitutional rights to be protected by the federal government under the 14th as all States governments are supposedly required to abide by the US Constitution.

        Lincoln was responsible for the war between the States. It was not a Civil War. The South merely wanted to go it’s own way, like the colonies during the revolution, and did not care for the authoritarian leanings of the Washington government. (which we are witnessing today as well). Their main reason being economic,,, the tariffs not slavery as most believe. Suggested reference is the book Southern Scribblings by Brian McClanahan. Good stuff!

        Obama was responsible for Syria and Ukraine. Remember “The Buck Stops Here”. If a president doesn’t know what his minions are up to he is not qualified to be president.

        One of the failings of the US Constitution is the fact that a lawsuit has to incur before the Supremos can interfere when unconstitutional laws are passed by a corrupted congress, federal or state. The damage is done before the fix is in. In this case millions of lost jobs, hundreds of thousands of bankrupt businesses and a population incarcerated for an alleged virus still not isolated or identified that is no worse than the flu and is SO BAD that it requires testing to know if you have it.

        Surely even a rabid States Rights advocate (me) would believe the federal government can step in to prevent the economic suicide of the entire country by a bunch of power crazed idiots?

        As for “NOT now” bailing out the States…. I’ll wait and see. IMO 2021 will make 2020 look like a picnic.

        And hey! I do play chess,,, not very good at it and certainly not the 3d chess player that many say Mr. Trump is. He has claimed he is a genius,,, ” a very stable genius”,,, so whom am I to question that!

        Am I for Biden…. naaaa. He is just a Trojan horse for Mz. Harris,,, a Marxist,,, but I have stopped playing the “lesser of two evils game” Problem is evil still wins. The only way I will ever vote again is if they have a “None of the Above” box I can check.

        And finally,,, Gee,,, all I said was 30 million were still unemployed (True! Yes) and the lockdowns were initiated under Mr. Trumps watch,,, (again true! Yes) If he wins the presidential popularity show I will wait to see if he tries to stop the sheer insanity in the several states tromping citizens rights and ensures the injections are voluntary only. My definition of insanity,,, Seven mothers were ‘dragged’ out of a school board meeting because they refused to wear a mask in Volusia county Florida. Florida, a state where the governor has stated masks are not mandatory and no jail or fines can be imposed. The board was so cowardly saying that the mothers were trespassing after being asked to leave. Worse yet,,, Security and ‘law’ enforcement (REAL men today) followed the boards distasteful and illegal orders. I was raised to treat women and especially concerned mothers with dignity and respect. Most in law enforcement today apparently had very poor upbringing and have no qualms enforcing authoritarian dictates saying they are only doing what they’re told. Hmmm… where have I heard that before?

        Well,,, Here I go again,,, another lengthy reply. I am really working on this problem. (lol)

        Good Day to you.

  2. “Everything in this world is based on one core premise: Expansion – more people.” Well, that sort of runs contrary to the Gates/Soros/Schwab great reset which has now been set in motion with the invention of the fake Covid pandemic. The idea is to reduce population and thus the accumulation of CO2, which these global warming knuckleheads believe is causing the planet to melt.

    Eventually the central bankers will try to eliminate the debt using perpetual bonds, inflation and the creation of even more electronic pesos from Heaven. There is not one politician in the world who has any intention of paying off the debt in any serious amount. It won’t be possible in any event…real or imagined. To make matters far worse, if Bidenkovich and the Marxist Dems get full control of the government, the end of the world as we know it will only be hastened.

    • Ken! Yes, NO. and everything in between! While you quote my premise – you argue that we have already LOST! And I don’t believe that! IF we had, we would not even be in a fight! If we had, we wouldn’t have the amazing Pro-Trump turnout! IF we had – we would not even be having – this discussion. We would not be – allowed. SO. YOU ave a choice. Devolve into your doom and gloom and inevitable demise! Or – FIGHT like Hell! Everything is about what you BELIEVE> If you believe we have lost – then we have. If you believe we can FIGHT! And WIN! The we CAN. I CHOOSE to Believe!

      • you are 100% right,we have to fight,we hold the power,we just got fat,lazy and unfortunately,ignorant. these people can kiss my ass,i don’t wear a mask and i won’t bend to their rules!

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