This morning, while taking my shower, I was thinking about the national debt. Most of the debate has been blaming the government for increasing it. But we never talk about the other side of the equation. Who is loaning the government the money? If they shut off the spigot and called in their notes, that would reduce the National Debt as well.
The Chinese? Other governments?
Nope. Much of the national debt is owned by you and me. Every time we buy a savings bond or we put anything in an institution backed by treasury notes, we are supporting the government’s habit. So, for those of you up in arms about the national debt, here’s what you do. Sell all your savings bonds. Close all your bank accounts (even those at credit unions), for they keep the money safe and secure by investing in government bonds. Sell all your mutual funds, for they park their cash in treasury notes. Keep your cash under your bed, where it is, umm, safe and secure.
You see, the national debt is important to you and me because it is a safe and secure investment that you can trust to return some small value for your investment. Would you feel as comfortable if your bank had to invest in Greece or Italy or Portugul because the US was no longer issuing treasury bonds.
Yes, we need to reduce the national debt, but not eliminate it. We need to realize that the national debt is important to the nation because it is a safe and secure investment.
