The federal government (operating budget) has a debt of $14.5 Trillion.
When we open up the canard of the unified budget (peel the onion, so as to say), we will find that:
The $14.3 Trillion (now $14.5 T) debt can be broken down as follows:
The OPERATING BUDGET (revenues from Income, estate and excise taxes - all cut from Reagan - Obama) OWES:
- $2.6 T (Trillion) to Social Security (paid for by Regressive FICA TAXES.)
- $4.2 T to MEDICARE and 110 smaller other Trust funds (paid for by FICA and other dedicated fees / taxes)
- $3.2 T borrowed from China, Japan, U.K. and S. Korea etc.
- 4.1 T owed in Treasury notes and bonds held by US public
- 0.4 T Interest on the debt
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14.5 T TOTAL AMOUNT OWED BY THE OPERATING BUDGET (these numbers fluctuate, so these are reasonable approximations).
Solution: Destroy the Unified Budget: "Balance individual Budgets": Many people believe erroneously that the trust funds are Ponzi schemes. Nothing can be further from the truth. The Trust funds are not the problem, rather the Unified Budget - handed down by Supreme Court in Fleming v Nestor (1960) is the Ponzi scheme (i.e. FICA tax surpluses go into the Unified budget (magician's disappearing box), and then no one in government is serious about returning the IOUs).
If the trust funds are an illusion, then Congress is the Magician!!!
There have been deliberate acts of Congress over the past 30-years that have led not only to our becoming a debtor nation, but also to the "Enron style" accounting within the Unified budget.
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