– #Quick reminder on The United States of America‘s Odd Debt Service[1] upon request –
Interest on the federal debt is now so immense that it’s consuming 40% of all personal income taxes. The largest source of revenue for the federal government is increasingly being devoted to just servicing the debt, not even paying it down. The problem is getting worse daily and will eventually result in even more pain for taxpayers.
Inspite of surging Governmental Debt[4] in lockstep with inclining Debt Service Contingencies and Capacities, common sense should've suggested enquiries into the odd nature of especially Developed Economies‘ Government (US: Treasury) Notes[5] and Bonds[6], having steadily rendered annual Interest Yields at 3 to 5 percent, matching Blue Chip Stocks' Performance.
How about doing a bit of a calculation?
For example, 120,000 US $ invested in Government Notes (2 to 10 years of investment period) for 10 years or Bonds for 30 years (20 to 30 years of investment period) at an annual interest rate of 3 percent would yield 161,270 US $ (10 year notes) or 291,272 US $ (30 year bonds) respectively.
Wow!
Now, who could afford such a lump sum just like that?
Few can, many times over ... 250,000 US $ ... 500,000 US $ ... 1,000,000 US $ ... 10,000,000 US $ ... 20,000,000 US $ ... 50,000,000 US $ ... 100,000,000 US $ ... 1000,000,000 US $ ... etc.
Feeling dizzy?
Eventually, findings tend to be solidifying hard evidence of an inherent Cycle of Cause-Effect Self-Referencing[7], serving to clarify the extent to which the Explosion of private Savings of mainly blessed, dubious or privileged Income Earners has been conspicuously correlating with the exponential Growth of Governmental Debt.
Accordingly, Governmental Debt Service is not only to amortise internal[8] and external[9] Debt. Crisp Governmental Debt taken up, is also to provide Special Assets backing the Provision of Returns on Investments to those natty or shadowy shareholders having acquired Treasury Notes and Bonds.
Ain’t this a Money Pit[10]?
Well, nevermind, at least the Statue Of Liberty may afford to keep on printing as much Money[11] as she likes.
Frame of Reference
Streetlife Is An Option: American Income Inequality, Poverty & Political Polarisation!
UAW's Charges vs Musk-Trump On Worker Intimidation 2024
Age Ain't On America's Agenda!
Centennials: Roosevelt FD (1933/38!) [Centennials: Churchill (1940!) ––– Centennials: De Gaulle (1947!) ––– Centennials: Adenauer (1949!)]
Nikki Haley‘s Odd Principle ...
[1] Press Time Lapse as follows: (1991) Tax Foundation - A Nation in Debt (taxfoundation.org) ––– (2019) The National Debt Is Now More than Ten Times Annual Tax Receipts | Mises Institute ––– (2023) American Taxpayers Are Now Slaves to Interest Payments | The Heritage Foundation ––– (2024) Policy Basics: Where Do Our Federal Tax Dollars Go? | Center on Budget and Policy Priorities (cbpp.org) ––– What Is the National Debt Costing Us? (pgpf.org) ––– related (1) as follows: (2024) OECD - Global Debt Report 2024 (oecd.org) ––– World Economic Forum - Annual Report 2023-2024 (weforum.org) ––– related (2) as follows: Taxation in the United States (Wikiped) ––– Internal Revenue Service (Wikiped) ––– List of allegations of misuse of the Internal Revenue Service (Wikiped) ––– related (3) as follows: IRS targeting controversy (Wikiped) ––– I.R.S. Acknowledges Black Americans Face More Audit Scrutiny - The New York Times (nytimes.com) ––– IRS Apologizes For Aggressive Scrutiny Of Conservative Groups : NPR ––– IRS announces sweeping effort to restore fairness to tax system with Inflation Reduction Act funding; new compliance efforts focused on increasing scrutiny on high-income, partnerships, corporations and promoters abusing tax rules on the books | Internal Revenue Service ––– related (4) as follows: Return on Investment - Re-Examining Revenue Estimates for IRS Funding 2024 (irs.gov) ––– Trends in the Internal Revenue Service’s Funding and Enforcement 2020 (cbo.gov) ––– The Complexity of the Tax Code - Most Serious Problems (2006/7) (irs.gov)
[2] American Taxpayers Are Now Slaves to Interest Payments | The Heritage Foundation
[3] (1991) Tax Foundation - A Nation in Debt (taxfoundation.org)
[4] List of countries by government debt (Wikiped) ––– List of countries by external debt (Wikiped) ––– Global Debt Database - Central Government Debt (imf.org) ––– Country List Government Debt to GDP (tradingeconomics.com)
[5] Example: TMUBMUSD10Y | U.S. 10 Year Treasury Note Overview | MarketWatch
[6] Example: United States Rates & Bonds - Bloomberg ––– World Government Bonds - Daily updated yields
[8] List of countries by government debt (Wikiped) ––– Global Debt Database - Central Government Debt (imf.org)
[9] List of countries by external debt (Wikiped) ––– Global Debt Database - Central Government Debt (imf.org)
[10] Tom Hanks - Idiot Laugh - “The Money Pit” - YouTube
[11] Related feature: Greenspan’s Stunt Show! - Cal Caleido’s Substack
Statue Of Liberty: "I Need A Dollar!"