We are paying $25B monthly interest on maturing bonds.

Our “national debt”, a debt in name only, a DINO, is the total value of all issued and still maturing treasuries. Who pays for the redemption of mature bonds? It’s not the taxpayers! It’s the buyers of newly-issued treasuries who pay for the redemption of mature treasuries. It’s equivalent to a simple bond rollover done every day by bond-owners. In every auction, more treasuries are demanded than are available from the supply of new issues. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed could even create an artificial demand for treasuries by buying them in the open market with a few keystrokes. Where’s the awful burden?

Our Treasury does not borrow money like a home-buyer getting a mortgage. It is rather a custodian of funds, like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending, fiat Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the sole cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, don’t restrict infrastructure spending for the future! Regulate the banks!

Rich people have been buying US Treasury bonds for 100 years. They are in every pension, insurance contract, trade collateral, bank reserve, etc.

Who pays for the redemption of mature bonds? It’s not the taxpayers! It’s the buyers of newly-issued treasuries who pay for the redemption of mature treasuries. It’s equivalent to a simple bond rollover done every day by bond-owners. In every auction, more treasuries are demanded than are available from the supply of new issues. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed could even create an artificial demand for treasuries by buying them in the open market with a few keystrokes.

It's a Ponzi scheme only if there is nobody buying the newly issued bonds. Deficit spending now is greater than ever and will always grow. Therefore, there will always be more newly issued bonds than retired bonds.

And there will be more than enough buyers for the new bonds because the 1% with the money always need a safe place to keep it. When you have a billion dollars, the FDIC limit of $250,000 does not make you feel safe enough.

Congress does not use or need our taxes for spending. The IRS repossesses enough federal spending to prevent harmful inflation and then destroys every cent of it. (Cash payments are shred and the pulp is sold). For spending, Congress creates new money out of thin air, deposits it in the Treasury, writes checks, and makes the Treasury auction bonds to finance the deficit, which is limited only by Congress and not by the availability of tax revenue.

Every spent federal dollar not repossessed by the IRS is saved by the private sector. Our annual budget deficit is exactly equal to the annual increase in private sector savings. YES! DEFICITS = SAVINGS! No deficits, no savings! A tax deficit is a savings surplus. It is money left on the table for the savers by Uncle Sam because he did not need it to prevent harmful inflation and because consumers need it to consume. We do not have a “national debt”. We have a “national savings”. The bad “Debt Clock” is really the good “Savings Clock”. How can we have too much savings?

Since bank loans must be repaid with interest and hard cash is moving to China, budget deficits (surpluses!) are the ONLY savings source that can sustain our economy. We need to DOUBLE our DINO / savings to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation, even with very high tax rates. Our (DINO + total bank deposits) / GDP ratio is less than half of the comparable figure for China. Our M2 (money supply) / GDP ratio is half of Switzerland’s ratio and one quarter of Hong Kong’s ratio. Too much savings?

We should be spending a lot more money on entitlements and fixing bridges. With our fiat currency, US can never run out of money. All we have to worry about is inflation when we run into shortage of goods. And with 20 million Americans looking for full time work, there is no danger of a goods shortage.

Congress can easily spend more on entitilements Uncle Sam can't run out of fiat money. Deficit spending is good for the economy right now.

Every spent federal dollar not repossessed by the IRS is saved by the private sector. Our annual budget deficit is exactly equal to the annual increase in private sector savings. YES! DEFICITS = SAVINGS! No deficits, no savings! A tax deficit is a savings surplus. It is money left on the table for the savers by Uncle Sam because he didn’t need it to prevent harmful inflation and because consumers need it to consume. We do not have a “national debt”. We have a “national savings”. The bad “Debt Clock” is really the good “Savings Clock”. How can we have too much savings?

Revenue/Spending ratio is lower and deficit spending is higher than ever before in your lifetime. People with few assets get benefits from federal deficit spending.

Every spent federal dollar not repossessed by the IRS is saved by the private sector. Our annual budget deficit is exactly equal to the annual increase in private sector savings. YES! DEFICITS = SAVINGS! No deficits, no savings! A tax deficit is a savings surplus. It is money left on the table for the savers by Uncle Sam because he did not need it to prevent harmful inflation and because consumers need it to consume. We do not have a “national debt”. We have a “national savings”. The bad “Debt Clock” is really the good “Savings Clock”. How can we have too much savings?

When you sell new bonds to pay for mature bonds, the mature bonds are paid for and retired. Period. You don't have to pay for them again. No Ponzi scheme.

Congress makes the Treasury sell bonds to cover a tax deficit Every spent federal dollar not repossessed by the IRS is saved by the private sector. Our annual budget deficit is exactly equal to the annual increase in private sector savings. YES! DEFICITS = SAVINGS! No deficits, no savings! A tax deficit is a savings surplus. It is money left on the table for the savers by Uncle Sam because he did not need it to prevent harmful inflation and because consumers need it to consume. We do not have a “national debt”. We have a “national savings”. The bad “Debt Clock” is really the good “Savings Clock”. How can we have too much savings?

Uncle Sam (US) has to spend a LOT of money on bridges or else we will need amphibian vehicles and Detroit is not up to that job.

Sorry! I am learning. I should have used "Quote Reply".

Every spent federal dollar not repossessed by the IRS is saved by the private sector. Our annual budget deficit is exactly equal to the annual increase in private sector savings. YES! DEFICITS = SAVINGS! No deficits, no savings! A tax deficit is a savings surplus. It is money left on the table for the savers by Uncle Sam because he didn’t need it to prevent harmful inflation and because consumers need it to consume. We do not have a “national debt”. We have a “national savings”. The bad “Debt Clock” is really the good “Savings Clock”. How can we have too much savings?

Bowles-Simpson (BS) would reduce the deficit, the amount of money that Uncle Sam (US) leaves on the table because inflation is nowhere in sight and consumers need savings.

US has to spend a LOT of money on bridges or else we will need amphibian vehicles and Detroit is not up to that job.

Every spent federal dollar not repossessed by the IRS is saved by the private sector. Our annual budget deficit is exactly equal to the annual increase in private sector savings. YES! DEFICITS = SAVINGS! No deficits, no savings! A tax deficit is a savings surplus. It is money left on the table for the savers by Uncle Sam because he didn’t need it to prevent harmful inflation and because consumers need it to consume. We do not have a “national debt”. We have a “national savings”. The bad “Debt Clock” is really the good “Savings Clock”. How can we have too much savings?

Bowles-Simpson (BS) would reduce the deficit, the amount of money that Uncle Sam (US) leaves on the table because inflation is nowhere in sight and consumers need savings.

US has to spend a LOT of money on bridges or else we will need amphibian vehicles and Detroit is not up to that job.

Congress can do all the deficit spending necessary until harmful inflation appears to be a threat. We are nowhere near harmful inflation. The problem is lack of federal deficit spending on infrastructure that would add to national savings and end the recession

I can't figure out why the national debt is a problem. Treasury bonds mature every week and Uncle Sam has to come up with the money for redemption. But there's also an auction every week and enough money comes in to come up with the money for redemption. And there's always enough buyers because the Fed is out there buying up bonds with cost-free keystrokes.

Can anyone help me?