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So what would happen if they called an amnesty on all the outstanding debt?
Who is this owed too?
China and India own nearly 70 percent of the debt.
I have read in several places that the bulk of the debt is owed to the Social Security fund, Which I believe is true. So, if that is the case, then the US citizens who have yet to retire are holding the bag.
And, I'm shooting from the hip here, but I assume that it's mostly owed to the Federal Reserve - an organization that Woodrow Wilson signed over part of the responsibilities of the Congress to in 1913.
когда в нашей стране такое будет, скорей бы. Вудру Вильсону +1.
US taxpayers own most of the debt. China has the biggest share of the foreign owned debt. So this isn't like a household budget at all. Mostly we owe ourselves so comparing national debt to household debt is bogus.

Same thing happened in WWII and we paid it off plus huge growth and low inflation. We have low inflation now and probably for a long time in the future. After unemployment gets back to maybe 5% then we should pay it down - with higher taxes, just like after WWII. That strategy worked for Dems and Reps then. It worked fine until Reagan.

Europe is proving that conservative economics is a massive failure. As they cut budgets their economies tank and their debt to GDP ratio gets worse. So they cut again. Of course we learned that lesson several times in history. That is why Nixon abandoned it.

Britain has had higher unemployment for longer than they did in the Great Depression! We have Bush 2 and Obama's teams to thank for not being in that mess. Still, we only had half the stimulus we needed because Republicans in the Senate would have blocked more. We need another trillion.

We can get it from our 1% crowd and large companies. They have nowhere else to invest anyway. They have so much cash that the banks are charging them fees to deposit it. They are buying treasuries at less than the rate of inflation - they are paying the US government to take their money. Yeah, just like your household finances, heh?

Reducing the deficit now will put us back in recession or worse and we'll chase our tail to the bottom like Europe is doing right now - today. The lesson is right in front of conservatives and they still don't get it. They want to go back to Hoover policies! That is so immoral it is criminal.

Notice that the debt downgrades by the rating agencies are for countries using conservative economics, austerity. The US was downgraded not due to debt but due to conservatives trying to block the debt limit increase. The agencies stated that so not my opinion.

Not all recessions are the same. We are in a liquidity trap now. Demand is much less than the monetary supply. That is like the Great Depression but not like the recession that Reagan and Volker created to kill inflation. Different kinds of recessions have different solutions. That escapes modern conservatives but they used to get it. Conservative policies work to increase supply but the middle class can't buy. We need to jumpstart the economy even more than Bush and Obama did and we need to do it right now.

The long term damages caused by conservative economics are huge. I can't get into that here but sit back and think about all those people whose skills are becoming obsolete. It is like throwing sand in your car's oil. You do that of course for your household finances, right?

Also consider that year after year college grads aren't getting jobs in their fields, or any fields. Their skills are becoming obsolete. Family friendly conservatives are killing of the potential for families. Great idea, right?

And there is much more.
Taken from a Wikipedia article

Foreign ownership

Composition of US Long-Term Treasury Debt held by foreign states, Nov. 2005–Nov. 2010. June figures are results of comprehensive Treasury Department surveys.
As of January 2011, foreigners owned $4.45 trillion of U.S. debt, or approximately 47% of the debt held by the public of $9.49 trillion and 32% of the total debt of $14.1 trillion.[65] The largest holders were the central banks of China, Japan, Brazil, Taiwan, Switzerland, Russia, and the United Kingdom.[67] The share held by foreign governments has grown over time, rising from 13% of the public debt in 1988[68] to 25% in 2007.[69]
As of May 2011 the largest single holder of US government debt was China, with 26 percent of all foreign-held US Treasury securities (8% of total US public debt).[70] China's holdings of government debt, as a percentage of all foreign-held government debt, have decreased a bit between 2010 and 2011, but are up significantly since 2000 (when China held just 6 percent of all foreign-held U.S. Treasury securities).[71]

Major Foreign Holders of U.S. Treasury Securities, 2000–2010 Source:

Major foreign holders of U.S. Treasury securities, June 2010-May 2011[72]
This exposure to potential financial or political risk should foreign banks stop buying Treasury securities or start selling them heavily was addressed in a June 2008 report issued by the Bank of International Settlements, which stated, "Foreign investors in U.S. dollar assets have seen big losses measured in dollars, and still bigger ones measured in their own currency. While unlikely, indeed highly improbable for public sector investors, a sudden rush for the exits cannot be ruled out completely."[73]
On May 20, 2007, Kuwait discontinued pegging its currency exclusively to the dollar, preferring to use the dollar in a basket of currencies.[74] Syria made a similar announcement on June 4, 2007.[75] In September 2009 China, India and Russia said they were interested in buying International Monetary Fund gold to diversify their dollar-denominated securities.[76] However, in July 2010 China's State Administration of Foreign Exchange "ruled out the option of dumping its vast holdings of US Treasury securities" and said gold "cannot become a main channel for investing our foreign exchange reserves" because the market for gold is too small and prices are too volatile.[77]
... but still, it looks like nobody gets it, right ;-(
Just to chime in: Precious little of this is due to Obama. The rest is due to Bush, who inherited a budget surplus when he took office. Just sayin'.
I have said it on another post. Bush spent so much and screwed up the US and other countries around the world. The black guy is getting the blame for it!!!
That's the way it's going down, +Randy Sagoo. That's the way the right-wing media (and their right-wing handlers) want it to go down.
OK, let me get this right. Obama ups the debt by 5 trillion, more than all the other debt combined, and its bush? Give it a break, democrats are burying our kids in debt.
+Ken Smith being in a foreign country, we get to see news that the people in the US do not. So they get fed BS. That 5 trillion was to take care of the mess started by Bush. The Bush family gained 20 billion into their pockets in 8 years. Cheney, Rumsfeld and all their defence buddies also took in billions. Do the Americans know about that?? Or are you that blind that you will believe whatever the media tells you.

If you want to read up on it, go to some of the international websites and news channels.
+Justin Virly why not erase the debt?

To me the US debt is more fictional for gaining control than of any value to the community. Helps many get sucked in by believing that is it true anyway. Sure the international trade payments have been affected, but that was created in order for control anyway.
+Justin Virly so why hang on to something that is of no value to the community other than to make them feel poor and worthless?
The U.S. Federal Reserve just has a licence to print cash. It is not based on any standard; it used to be the gold standard until your congress members at the time voted that out of congress in favor of a private company.
Many currencies have followed suit, including the Australian currency.
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