The U.S. government’s official debt is at an all-time high of $11.8
trillion. Every year, Washington has to make a staggering $335.3
billion in interest payments just to avoid default on that debt. In
fact, just the interest on the national debt now equals 12% of all
federal spending.

The Federal Reserve is also in hock up to its eyeballs — the
liabilities on its balance sheet have DOUBLED — from $1.2 trillion a
year ago to more than $2 trillion today.

Most terrifying of all — especially with the first wave of almost 4
million baby boomers reaching retirement age this year — unfunded
government IOUs are coming due on Social Security, Medicare, and
Federal pension payments. Those obligations are enormous: An estimated
$104 TRILLION.

We are now the single most indebted nation in the history of the
planet. We owe more to foreign investors, retirees and ordinary
citizens than we could ever hope to repay.

And that’s not the half of it: Washington will add an all-time record
$1.8 trillion to the national debt, pushing our budget deficits to
almost 13% of GDP.

This year and every year for the foreseeable future, Washington will
have to borrow 80% of the world’s surplus savings just to pay its
bills!

One of the wonders of public debt is - it makes everybody poorer.

It reduces our financial worth across the board. Even the financial
worth of people in Japan, China and India are negatively affected by
our debt.

Debt has one advantage over credit - while the value of money
decreases over time, the value of debt is steadfast or increases over
time. Therefore, the value of debt is rock solid - its value never
fades. it is a good tool for redistribution of wealth.

Of course, it's a well-known fact that when a Chinese toy manufacturer
addicted to exports to the US pays their bills to the utility company
who then pay the Indonesian oil trader who then pays the Dubai banking
entity who then somehow pays the actual people drilling the oil, they
are all selling the US$ debt one to another. Just like our small time
home loan refinancing company had been selling our debt to wamu or
some wall street entity.

For the reason of disparate political edge the US has over the world,
China, Europe and Iran are advocating a new world order not
denominated in US$. Hey, they think this will take away the economic
influence of Americans? At the worse, we stop buying their garments,
toys and their oil - don't they realise that? They still have to
consume American made movies and American-franchised crap food and
beverage. OK, so what, toys become more expensive so we won't buy them
anymore. Why they might be tainted by melamine anyway?

Debt is a good thing. It reduces our ability to spend and causes
financial havoc to countries who try to sell things to us. We need to
go on a diet of imports anyway.

You would think debt would make us think twice whether to spend a
trillion dollars in a foreign war that hardly benefit Americans or
spend that trillion dollars at home for health care. But no, Americans
are like the Nigerian, Chinese, Mexican or Indonesian immigrant
visiting their old hometown - Americans like to show off by spending
for the benefit of others rather than their fellow citizens - we
choose spending in Iraq rather than on health care which will lower
the cost of employment and stop the export of jobs overseas.