The US owes itself money?

The debt falls into two broad categories: Intragovernmental Holdings and Debt Held by the Public. (Source: "Debt to the Penny," U.S. Treasury, January 26, 2017.)

Intragovernmental Holdings. This is the federal debt owed to 230 other federal agencies. It totals $5.554 trillion, almost 30 percent of the debt. Why would the government owe money to itself? Some agencies, like the Social Security Trust Fund, take in more revenue from taxes than they need. Rather than stick this cash under a giant mattress, they buy U.S. Treasurys with it.

By owning Treasuries, they transfer their excess cash to the general fund, where it is spent. Of course, one day they will redeem their Treasury notes for cash. The Federal government will either need to raise taxes or issue more debt, to give the agencies the money they will need.

https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124

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katielass · F

If a private business conducted its business the way the federal government does, the CEO would be in court trying to stay out of prison.

SimplyTracie · 26-30, F

Like Trump? No, he just files for bankruptcy. 😂😂😂

therighttothink50 · 56-60, M

@SimplyTracie: Why don't you do something about the law? Filing bankruptcy is legal. Do I think it is right? No, I don't think so but it is legal.

We are a nation of laws, we don't get to pick and choose what laws we are going to enforce or not enforce. If we don't like the laws, we elect officials who will change these laws.

SimplyTracie · 26-30, F

@therighttothink50: I am not arguing about laws or bankruptcy. I think government should be run like a business but not like Trump ran many of his businesses. Government cannot just erase its debt like he did. That's all I was trying to say to Katie.

therighttothink50 · 56-60, M

How about Obama, he added ten trillion dollars of debt onto about ten trillion dollars of debt that 43 presidents before him accumulated? Virtually doubled the national debt. Too boot, he doubled this debt with virtually zero interest rates, a luxury previous presidents never enjoyed. He also added another albatross in Obama care to the unfunded liabilities ledger.

What fantasy mode was Obama in when he did this with the help of both houses of Congress? How is this not the biggest story of the century? Debt enslaves people and eventually blows up an economy and a country.

We shall see what Trump does, I guarantee you he will not accumulate the debt that the treasonous despot before him did. Trump is left with fixing the biggest mess a president has ever inherited. If he doesn't correct this, the country is finished, that is a fact.

katielass · F

@SimplyTracie: I fail to see what President Trump has to do with this post. He is not responsible for the government borrowing from itself nor is he responsible for doubling the national debt. In fact, he has already been able to save the taxpayers hundreds of millions. But don't let those facts distract you from your little tantrum. And btw, when I was your age I didn't borrow money from my parents. I was already married and putting myself through school.

therighttothink50 · 56-60, M

@katielass: maybe she would enjoy living in Venezuela today, Obama's model of fiscal responsibility. A Communist hell hole where they eat zoo animals. But alas, the airports over there tax people for the the air they breathe coming from air conditioning. They are saving the planet, thank God.

SimplyTracie · 26-30, F

@katielass: I was addressing your comment about CEO's and not the main post. I have read articles about how Trump profited millions from these bankruptcies while investors lost millions.

That's all.

SimplyTracie · 26-30, F

@therighttothink50: What are you blabbering about?

katielass · F

@SimplyTracie: Oh, I think if you had meant that government should run like a business that's what you would have said. You chose to make a snide comment about trump and a few projects that failed. So, since you brought him up, let's look at it. The fact is, he has had hundreds of thousands of successful projects and only a very few that weren't successful. You'd have to understand statistics to get this but his failure rate in percentages is zero. The federal government is in debt to the tune of $20 trillion. I'll take Trump's financial/business advice any day over anyone in the government. Its the government that has been a failure.