Quote:
Originally Posted by flstf
I know I don't understand this very well but not all the national debt is in T-Bills/Bonds is it? Don't we run a deficit every year and the fed issues more money and what we spend over that which is collected in taxes etc.. just gets added to the debt?
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You are partly correct
As I understand it...
The Debt is owed to the Federal Reserve Bank (the Fed)
The Fed is a private non goverment organization (a bank)
The US Goverment does not print money, the fed does.
Our national debt is the same sort of debt a bank would issue to you
When we go into default, we cannot legally borrow money or
make interest payments on the debt.
The fed is the first lien holder.....So those bonds
cannot be legally be paid untill the fed is satisfied.
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