can anyone tell me the accounting entry we can make to eliminate the debt? specifics inside

[Willie99]

Assets = 0

Liabilities (recorded only)

US Public and businesses 5.9 trillion
Social security trust fund 2.5 trillion
China 1.1 trillion
Japan 900 billion
Other countries 1.6 trillion
public pensions 800 billion
all others 1.2 trillion


Equity (14 trillion)



what's the accounting trick to get rid of this?

 

[taylor13]

I'd think we should start by quit borrowing

 

[Willie99]

now, who do we not need to pay?

can we stiff US savings Bond holders?
can we stop paying social security? or pensions?
can we stiff China? or Japan? or the rest of the world?

do you think they'd mind?

thanks in advance

 

[ScottL]

Can I wager that Akphi will have 25 posts in this thread by midnight?

 

[akphidelt]

Assets = 0

Liabilities (recorded only)

US Public and businesses 5.9 trillion
Social security trust fund 2.5 trillion
China 1.1 trillion
Japan 900 billion
Other countries 1.6 trillion
public pensions 800 billion
all others 1.2 trillion


Equity (14 trillion)



what's the accounting trick to get rid of this?

You are making red-herrings now. I never said you can get rid of the national debt with accounting tricks. I said the national debt was an accounting trick.

When we pay China $1.1 trillion we will simply rollover $1.1 trillion in principal and the Govt will have to either cancel out the interest with your taxes or create new money to pay for the interest since that money doesn't exist in the system.

Like I said.

Principal pays off principal
Taxes pay off (spending - deficit spending)
Deficit Spending is simply credited in to people's accounts and backed by a new interest bearing Govt debt

This is why principal payments on maturing Govt debt will never ever be considered a Govt expense.

And the reason why interest is a Govt expense is because interest does not exist in our system. There is no money accounting-wise that can pay for interest. That money has to be "created". Geez, you ask some very stupid questions sometimes instead of trying to have an intelligent debate about the subject.

 

[snoop]

Willie is feeding the troll and commies on this board.

 

[Willie99]

no frat, there was an article posted by somebody that said you can eliminate the debt with an accounting entry, and you concurred.

 

[akphidelt]

now, who do we not need to pay?

can we stiff US savings Bond holders?
can we stop paying social security? or pensions?
can we stiff China? or Japan? or the rest of the world?

do you think they'd mind?

thanks in advance

We don't have to stiff them. If we need to pay China the Govt pays China $1.1 trillion then auctions off $1.1 trillion of new securities. The same process happens. 80% of those securities are paid for by banks that are meant to purchase Govt debt to create a market for them. Why do you think the Govt has "special" dealers of these securities that buy the debt from them to sell to us. Don't they need our money to pay off China. Don't they need your hard earned tax dollars to pay off China? Funny how 1% of treasury's auctioned off by the Govt is actually bought by individuals like you and I. 90% our bought by foreign accounts at the Fed and banks themselves.

That is why principal isn't even considered spending to the Govt. You would think if we had to pay off China the $3.2 trillion of securities we had to pay off last year would have been included in not only the expenditure category of the Govt but also the amount they have to "borrow" from us.

 

[akphidelt]

no frat, there was an article posted by somebody that said you can eliminate the debt with an accounting entry, and you concurred.

I'd have to see a source, I don't recall ever making that statement.

 

[Willie99]

Willie is feeding the troll and commies on this board.

I call it fishing

 

[akphidelt]

Willie answer the question I asked before.

Do you believe that every dollar in America has a corresponding liability?

 

[Willie99]

http://www.therxforum.com/showthread.php?t=849282&highlight=accounting+entry+debt

 

[Willie99]

Willie answer the question I asked before.

Do you believe that every dollar in America has a corresponding liability?

define every dollar in america?

 

[akphidelt]

define every dollar in america?

Every single dollar in existence from money at the banks, to money in your pocket, your checking account, money at the Fed, money at the Treasury, USD in China, etc.

Does every one of those dollars have a corresponding liability?

 

[FrankieCarbone]

I have read that the U.S. was a creditor nation until about 1988. Without the government running huge deficits back then, how were we able to grow the economy without all that government spending?

http://www.investopedia.com/terms/c/creditor_nation.asp

 

[akphidelt]

I have read that the U.S. was a creditor nation until about 1988. Without the government running huge deficits back then, how were we able to grow the economy without all that government spending?

http://www.investopedia.com/terms/c/creditor_nation.asp

That just means we have spent more of our Govt spending overseas then other country's have spent on us. Such as the $1 trillion we have spent on sweatshop labor Chinese goods. So it does not alter the accounting on the overall deficit other than the fact for America to be a net saver the deficit actually has to be larger since so much of our money is being shipped overseas and taken from us.

Here's kind of a good graph showing the sectoral balances. When we ship dollars overseas we as Americans lose those dollars to purchase goods and services within America.

And you'll notice that the more the private sector saves, the bigger the Govt deficit is.

 

[Dave007inVegas]

http://www.therxforum.com/showthread.php?t=849282&highlight=accounting+entry+debt

oops!

 

[snoop]

Willie answer the question I asked before.

Do you believe that every dollar in America has a corresponding liability?

Let it go dumb shit.

Every US dollar has a corresponding liability? I can't help but once again laugh at your stupid ass.

So do you really think those shitty MBS are sitting on Ben Bernanke's balance sheet are assets?

When you can print a shitload of money out of thin air to buy trash, there is no such thing as liability or asset in that matter.

You talk like a sheep.

You think like a sheep.

This is exactly what the government wants you to be.

 

[FrankieCarbone]

So we basically stopped investing our surplus money, and started borrowing to buy consumable goods made in China. Sounds like a great plan.

We've gone from other nations owing us money, to us owing them a ton of money and interest. Why not lend to other countries so they owe us money?

 

[akphidelt]

Let it go dumb shit.

Every US dollar has a corresponding liability? I can't help but once again laugh at your stupid ass.

So do you really think those shitty MBS are sitting on Ben Bernanke's balance sheet are assets?

When you can print a shitload of money out of thin air to buy trash, there is no such thing as liability or asset in that matter.

You talk like a sheep.

You think like a sheep.

This is exactly what the government wants you to be.

MBS's aren't dollars.