Foreign Debt Costs Average U.S. Household $50K
According to the latest U.S. Treasury report (recorded at the end of August) foreign interests held a total of $5,430,000,000,000. If you were to divvy that amount among all 114,328,000 households in the United States – according to the Census Bureau's latest calculations (recorded in June 2012), that means that each home would owe approximately $47,494.93 in foreign debt.
That's quite a bit of money... In fact, it's pretty close to the median family income rate which was about $50,054 in 2011.
From 2009 to present day the total U.S government debt held by foreign interests has risen from about $27,653.29 per household to an astonishing $47,494.93 per home. That means that in just three years it increased roughly $19,841.64. Imagine what heights our foreign debt could surge to in another short three years...
At that rate of increase taken into account with our quickly rising income gap in the U.S., we could easily see the debt held by foreign interest soar to well beyond $25,000 more than the average American household brings home for income throughout an entire year.
This is bad news for families and poses a great political challenge for our next president. How will President Obama or Governor Romney be able to fix an ailing economy when our foreign debt is out of control?
We definitely need to focus on domestic production of globally attractive goods and services so we maintain a level playing field with Mainland China. The Mainland Chinese currently own about $1,153,600,000,000 in U.S. Treasury securities (as of the end of August).
From Terence P Jeffrey at cnsnews.com:
Back in January 2009, interests in Mainland China held only $739.6 billion in U.S. government debt. That month, the U.S. government owed about $6,658 per American household to interests in China. As of the end of August, the U.S. government owed about $10,090 per American household to interests in China—an increase since January 2009 of about $3,432 per household.
Now, consider that nearly one-half of our own population doesn't pay taxes, and that leaves a big burden on the rest of us taxpayers. It's no wonder we're experiencing a society with a disappearing middle class – and it sounds like we've got our big bureaucratic government to blame.
And I don't know about you, but I consider a burden of close to $50,000 per home to be a little more than the average income-holder's fair share. Out of principle, the burden shouldn't fall on the rich either. The government got themselves into this mess and it's time they find a way out without destroying American families.+10
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