Posted by: Lisa Crowley
Where does the money come from to fund the national debt?
The clock is ticking for the national debt. As the seconds go on our government is racking up an enormous bill that they are unable to pay off, and for the short term you want that. I have always wondered where the government gets the money to spend on the programs to enhance and maintain the society we live in. They mostly get there money from themselves, as a matter of fact over 40% of our debt is owed to the Federal Reserve, while foreign investment makes up 22%. Currently our national debt is 10 trillion dollars and from that we owe 400 billion dollars to ourselves. If we were to just start printing off money so we would no longer be in debt, then our money would become inflated and our economy would spiral further into a recession; therefore it is better for the government to slowly get rid of the debt not creating inflation.
So how do we solve this problem?
There is no easy solution to this problem because while we keep our debt, the tax payers are wasting there money on paying off the interest. One possible solution is having the private sector create a competing currency until the U.S. is able to bring there currency back to a stable level.
Anyway you look at it, our debt has been rising since 1961.
Sources:
http://www.alkalizeforhealth.net/Ldebtclock.htm
http://www.chrismartenson.com/forum/us-national-debt-will-default/11586
http://www.federalbudget.com/
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