Third World Debt forgiveness...and coming US Debt renunciation

[EVDebs]

With Bono leading the charge on Third World debt being odious to the masses, who will eventually come to the rescue of the American Taxpayer, who will be forced to make up for the loans to the Third World countries AND the prodigal Bush Administration's debt overloadings ?

""The Bureau of the Public Debt divides the national debt into two main categories: debt held by the public, and intragovernmental holdings. Intragovernmental debt includes money for government trust funds, such as pension plans and the debt for social security which is about $1.7 trillion as of May 2005. Overall, intragovernmental holdings account for over $3.1 trillion of the total debt at this time.

The remaining $4.6 trillion or so has been purchased by the public, including foreign entities. This largely comes from the issuance of US Treasury securities. Nearly half ($2.2 trillion) is composed of Treasury notes (aka T-notes), while T-bills and T-bonds (including savings bonds) cover most of the remaining public portion of the debt. Bonds sold for infrastructure projects are also part of the national debt.

It is common for individual Americans and businesses to buy bonds and other securities, though much of the debt is now held overseas. At the end of 2004, foreign holdings of Treasury debt were $1,886 billion, which was 44 percent of the total debt held by the public. Foreign central banks owned 64 percent of the Federal debt held by foreign residents; private investors owned nearly all the rest (figures are from the Analytical Perspectives of the 2006 U.S. Budget, page 257).

The country holding by far the most debt is Japan which held $1.2 trillion at the end of March, 2005. In recent years the People's Republic of China has also become a major holder of Treasury debt, holding $223.5 billion at that time....

Despite the drawbacks of making future projections, however, a responsible government must arguably make long-run projections so it can prepare the country for future possibilities. The federal government does provide long-run budget projection in Table 13-2 on page 209 of the Analytical Perspectives of the 2006 U.S. Budget. It projects that the federal debt held by the public will reach 249 percent of GDP in 2075. This is more than double the maximum reached during World War II and nearly four times its current level. Most of this increase is due to projected increases in entitlement spending and the resulting interest on the debt. Needless to say, this projection is very troubling. However, it is worth noting that this is a projection, not a prediction. This projection assumes normal economic conditions and that government policies will follow current law. The stress of a quadrupling of the debt would likely cause one or both of these items to change.""


http://en.wikipedia.org/wiki/U.S._public_debt

With each US citizen's share of the debt at around $28,000 http://www.brillig.com/debt_clock/ and China now making moves to go off putting more money into US Treasury investments, we must ask ourselves, who will bail out the US taxpayer ? Bono, will you help ?

[acmejack]

1. It would seem the only explanation for their conduct.

They have no intention of honoring it.

[tularetom]

2. Remember the old adage

"If you owe the bank $10,000 the bank owns you. If you owe the bank $10,000,000 you own the bank". We're in so deep we could destroy the world economy by defaulting on the debt we owe to foreign banks.

[K-W]

3. They will just cook the books like they always do.

They will liquidate liberal government and put the burden of debt on the working/middle classes through tax reform. Then the US working and middle classes will pay out the nose into the economies of China and Japan where, suprise suprise, American investors will have bought up assets. So wealthy Americans will get paid coming and going at the expense of both the US and Chinese working classes.

[EVDebs]

7. The wealtiest 1 and 1/2 percent 'they'. The regular taxpayers will pay

And pay thru the nose. Those wealthiest will offshore and hide their wealth from taxes and the 'hidden tax' of inflation if Bush just decides to print more money to 'pay' for these deficits.

We're in for a wild ride. Buckle up.

[sasha031]

4. the debt relief is a scam

[sasha031]

6. quote from Economic Hit man

"The G8 summits (US,Uk, Canada, France, Germany, Italy,, Japan, Russia) the World Bank, and IMF are once again exploiting these nations and they are calling it "debt forgiveness". They are insisting on " conditions" that are cloaked in the phrases like "good governance". these policies are good and sound only if you are looking at them through corporate windows.. The countries that agree to such conditions are called upon to privatize their health, education, electric, water and other public services-in other words, sell them to the corporatocracy."


You have got to read the book " Confessions of an Economic Hitman"

[jimshoes]

5. I heard that the ruler of

the United Arab Emirates, just before his death, forgave every citizen of the UAE their outstanding debts. It was told to me by a friend who has worked in the country. I am not sure if it's true 100% but they are a very wealthy country. Don't think that will happen here.