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The National Debt

February 24th, 2014 Comments off

Democrats and Republicans are blitzing us with propaganda about the national debt.? My purpose here is not to side with either political party, but to add understating to the subject. ?Contrary to what many people think, China is not our largest creditor.? Our largest creditor is our Social Security Trust Fund.? But, if that?s the case, are we really in debt?? Do we have to pay ourselves back?? To understand all of this, let?s take a very brief look at history.?

Alexander Hamilton, the first United States Treasurer, was also experienced in banking.? Each state had accumulated debt in helping finance the Revolutionary War (1775-1783).? In 1790, Hamilton instituted a program of repaying the war debt to each of the thirteen states.? The payments were from the federal treasury with a certain amount going to each state, earmarking how much was for interest and how much for principal.???

For the next one hundred twenty-five years, the primary debt our nation took on was for fighting wars?the War of 1812, Read more…