Aces High Bulletin Board

General Forums => The O' Club => Topic started by: Sixpence on April 27, 2004, 08:40:03 AM

Title: Question
Post by: Sixpence on April 27, 2004, 08:40:03 AM

I was reading this and I notice we pay 1 billion per day on interest on our 5.7 trillion dollar debt. Do we pay this interest to ourselves? And if so, why? And who pays this interest?

http://www.house.gov/apps/list/press/ms04_taylor/reagan041601.html

Title: Question
Post by: AdmRose on April 27, 2004, 09:38:54 AM

The national debt is how much the government has borrowed from various sources throughout the years, the interest goes to the parties borrowed from. (That is, if its EVER paid back)

Title: Question
Post by: Mickey1992 on April 27, 2004, 09:49:19 AM

Nearly 30% of the federal debt is held by foreign investors/countries.  So theoretically $300,000 of our tax dollars is going overseas every day.

Title: Question
Post by: Sixpence on April 27, 2004, 09:56:41 AM

Quote

Originally posted by Mickey1992
Nearly 30% of the federal debt is held by foreign investors/countries.  So theoretically $300,000 of our tax dollars is going overseas every day.

So foreign countries(and whoever else) are making a killing off our debt? Would this be wealth leaving the country?

Title: Question
Post by: Mickey1992 on April 27, 2004, 10:04:16 AM

Yes.  If you think the trade deficeit is bad, just tack on what we are paying overseas in interest as well.

Title: Question
Post by: Sixpence on April 27, 2004, 10:36:13 AM

Ok, I had been doing some reading on how Reagan increased our debt some 3 trillion dollars. If I am to understand correctly, he was borrowing money? Money that had to be paid back with interest?