Will the US Government Ever Payback Their Debts?

Big debt issues | A theory telling us not to worry | Useful Practices for you

What if there is something to the whole debt scheme of the world. The US is in so much debt to ourselves. What does that mean? And if we, the people, control this entire indebtedness to ourselves, can’t we just forgive it? What can we learn from debt and how to apply it successfully in our lives?

The US debts are owned not only by US citizens but also by multiple foreign countries. The reason is that the US doesn’t put any restraints on who can buy our treasury securities even North Korea could buy them, but I don’t know why they would. Here may be some news for you. Japan holds most of the US’s debt out of any other foreign nation, second to China.

China is smart in owning American debt, where they play the game of increasing the value of the US dollar. When the US dollar is high, but the Yuan is low, Chinese manufacturing, goods, and services appeal more to US businesses. They plan to be the number one choice for business production, which is why they are the second soon to be the largest GDP economy in the world. China is smart in owning american debt where they play the game of highering the value of the US dollar. When the US dollar is high but the Yen is low the demand for Chinese manufacturing, goods and services are more appealing to US businesses among others. Their plan is to be the number one choice for businesses production, which is why they are the second soon to be the largest GDP economy in the world.

Since the US civil war in 1865, the US government has been in a large amount of debt.

Let us do some simple math; when could it happen? If we stopped spending all tax revenue today?

The US government collected $4.65 Trillion this year in taxes.

That would mean 30.5/4.05 = 7.5. The debt would be paid in full if the government did not spend anything for the next 7.5 years. That extra .5 for the eighth year would be surplus and help pay off California’s indebtedness. But the federal government keeps spending more than it makes. 4.05–6.82 = $2.77 Trillion in the hole.

Where is the US at today based on the GDP to debt ratio?

Here comes the piece of advice. If you wish to take on debt, purchasing something that creates revenue and appreciates well is the best action. Then when you pay off the debt, if you so choose to do, you can have more money than you had before taking on the debt. That is easier said than done, and you can achieve that through franchises, real estate, etc. And more importantly, debt is non-taxable. That means you can get into debt all day long and pay no taxes, but the interest rate is something to, of course, be aware of that is your only enemy to beat. So, make sure that debt is buying something that is paying you back. We are not like the US government. We cannot print our money, but we sure can invest it and watch the money grow as if we could!

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