Individual National Deebt

[Gregory Matthews]

It has been said that each individual's share in the National Debt amounts to $69,870.00!

On that basis the best way to increase individual family wealth would be to kick the children out on their own. Each child that leaves would result in an immediate increase of family wealth of almost $70,000, clearly something to be considered as few investments would have that type of return.

[Gregory Matthews]

The figure that I quoted above was in error and I misunderstood it.

I have done some individual research on the subject and the estimates as to the individual share of the National Debt range all the way from about $50,000 to over one million dollars.

I went on one website that calculates based upon age and future life span to obtain a lifetime share of the National Debt. At my age it calculated my share at $67,626.00.

So, on the basis of the clear error that I made in my first post, I retract the figure[e that I gave and I do not replace it with a specific figure.

However, I continue to suggest that whatever the figure may be, one can increase the family wealth by kicking the children out on their own!

:)

[fccool]

Most Americans are poorly educated as how all of that work. There's a false understanding of monetary dynamics of this nation, and as to what actually the "national debt" is, and who owes who.

A couple brief facts, to keep our future children living at home.

1) National Debt is not like a household debt. You can't divide it among people and treat it as such.

2) Government debt in fiat monetary dynamics directly ties into the issuance of money by government to finance economic expansion. In such economy money = debt. No debt, no money. Thus debt will never be paid off. It's merely a dynamic cycle to keep the economy expanding within certain limits of yearly inflation of money.

3) Federal government is not a corporation that you are a partner in, and thus responsible for its losses. Federal government is an independent entity that's given a function in a country to carry out certain tasks INDEPENDENTLY of whether majority approves it or not. It's representative, but it's only compulsory within a legal structure that it sets up.

Federal Government can only demand taxes from you legally... nothing else. It can't demand "your share of national debt".

4) Federal debt is an economic investment on behalf of the investors, and is subject to limited liability nature of the engaged parties. US Government is not you or your family, neither are you co-signing on their loans. They play a separate economic game than your household, and they understand that... so do the investors who choose to play the game.

If you borrow money and default, your children will not inherit your debt. Such is the nature of contract and the risks shared by both parties. The debt default is a risk that an investor takes based on calculated promise of return.

5) The only thing that the Federal Government "owns" is a claim on future tax revenues, and that's what the investors bet on... that federal government will pay the interest on obligations from the future tax collections.

6) In such fiat system, default and restructuring is inevitable. Borrowing cycles will delay it, but there's no way out of it, since paying it off would result in global recession.

At the point of default, no family will be paying anything other than taxes. Higher taxes can cause ex-patriation, and businesses moving overseas, and people settling for working less hard and spending less, all of which leads to recession and lesser tax revenue.

Thus, government is doing the only thing it can - continue the borrowing cycle until it hits its natural limit of default, in which case it will probably begin again with a revolution and a new government.

[LifeHiscost]

Quote:

it will probably begin again with a revolution and a new government.

A good tool to help recognize that direction might be the book by Mark Finley entitled "The Next Great Superpower"

The events of these days is just an indication of that reality.

http://www.weather.com/news/science/sinking-how-climate-change-affects-marylands-shores-20140828

God is Love! Jesus saves!

[LifeHiscost]

Quote:

one can increase the family wealth by kicking the children out on their own!

Which is a reason why one is better off to equate wealth in different terms than lucre.

Oxford dictionary: lu·cre

ˈlo͞okər/

noun

noun: lucre

money, especially when regarded as sordid or distasteful or gained in a dishonorable way.

"officials getting their hands grubby with filthy lucre"

"Ho, every one that thirsteth, come ye to the waters, and he that hath no money; come ye, buy, and eat; yea, come, buy wine and milk without money and without price."

Isaiah 55:1 KJV

God is Love! Jesus saves!