We owe WHO??

The other day Examiner sent me an email, hes a really detailed oriented guy.. Someday I'll post some of the spreadsheets he's done on Social Security...with a warning about having anything breakable nearby when you read them.  Before I go off on a rant about Social Security............

 Every now and in his research Examiner, finds something simple enough for dummies like me to understand without a lot of explanation  Most of the time it's information from an obscure source, or something the media has largely ignored or intentionally under-reported.. When something meets those two criteria, there's a good chance I'll get an email.

With all the noise that's been coming out of DC about the debt ceiling and spending...  you'd have thought the media would have taken the time to tell the public exactly who the Government owes.. Sure we've heard about default, the President's tried to force his solution on the public with threats about Social Security and Military Pay..  We're told everyday the how much we owe the Chinese...... but let's take a look at the email..

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 Here's a quick and fascinating breakdown by total amount held and percentage of total U.S. debt, according to Business Insiderhttp://www.businessinsider.com/who-owns-us-debt-2011-7:

* Hong Kong: $121.9 billion (0.9 percent)
* Caribbean banking centers: $148.3 (1 percent)
* Taiwan: $153.4 billion (1.1 percent)
* Brazil: $211.4 billion (1.5 percent)
* Oil exporting countries: $229.8 billion (1.6 percent)
* Mutual funds: $300.5 billion (2 percent) 
* Commercial banks: $301.8 billion (2.1 percent)
* State, local and federal retirement funds: $320.9 billion (2.2 percent)
* Money market mutual funds: $337.7 billion (2.4 percent)
* United Kingdom: $346.5 billion (2.4 percent)
* Private pension funds: $504.7 billion (3.5 percent)
* State and local governments: $506.1 billion (3.5 percent)
* Japan: $912.4 billion (6.4 percent)
* U.S. households: $959.4 billion (6.6 percent) 
* China: $1.16 trillion (8 percent)
* The U.S. Treasury: $1.63 trillion (11.3 percent) 
* Social Security trust fund: $2.67 trillion (19 percent) 

So America owes foreigners about $4.5 trillion in debt. But America owes America $9.8 trillion.

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I’ll tell you what, I’m feeling generous today so I’m giving my share of what’s owed to me to you.  All you have to do is collect it – deal?

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I highlighted the two largest numbers in different colors for a reason.. Most of us understand the Social  Security Scam..  It's a little tougher to understand the debt to the Treasury.. and it's a big number.  What that really is is Treasury Debt to the Federal Reserve,.. It get's a little hard to explain.  The Federal Reserve Materializes the money out of thin air.. pure magic   Then they loan it to a handful of select banks who buy Government Bonds, the Government ends up paying interest to the banks.  If the Fed decides it's time to redeem the bonds, theu wave their magic wand again and materialize the money Treasury needs to buy back the bonds,at that point, the US Treasury owe the Reserve the Money and has to pay them interest....... 


Take a listen to Ron Paul

Dylan Ratigan: Give me any sense of why it is we’re not having any conversation on canceling some of this debt, especially the debt that has been fabricated, invented, and absorbed into the Federal Reserve.
Ron Paul: Well, that would disrupt things, and it would expose the Fed for some of the tricks that they play. So, they’re not interested in it. I was very pleased – I did get a fair amount of attention on the Internet. People praising this idea that it was a sort of a painless way of solving the problem. But it’s really only temporary too because you don’t want to do that permanently. But if you wanted a year reprieve, and maybe the American people would get this Congress serious about straightening up their act, and get together, and bring this under control. But, yes, I suggested that it’s not a real debt. They created it out of thin air and they bought treasury bills. So, the taxpayer has to continue to work hard to pay the interest to the Federal Reserve. So, if you dismiss that debt of 1.6 trillion dollars, and payment came off, all of a sudden we’d get a repriev

READ THE WHOLE THING

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So what would happen if the Government defaulted on hat they owe the Treasury..  Tim Geithner would throw a temper tantrum-- Bernanke would cry foul, the big Wall Street Banks could lose their source of free money.. they might stop donating to Obama ..  Most likely inflation would slow, it would make less sense for the Fed to Create Pretend Money if they wern't sure the American people would give them real money in return..

AND EVERYBODY COULD SHUT THE HELL UP ABOUT THE DEBT CEILING FOR A WHILE