Hamilton’s Spending Scheme And You

Interest payments on the U.S. federal debt “topped” $1 Trillion as of the 11th month of the fiscal year ending in October, funding the U.S. national debt now standing at $35.35 Trillion, equating to 99% of our Gross National Product (GNP). The last federal budget shows $6.1 Trillion of spending, but only $4.4 Trillion of revenue, so this debt is going up. Interest is now 16.39% of the budgeted spending, but more ominously, 22.72% of tax revenue.

In 30 years, the Peterson Foundation projects that this federal debt will equal 166.2% of GNP.

So this year, $1 Trillion of the value of all of the goods, services and wages of the entire private sector and public sector components of the economy will be paid to creditors who do nothing but hold what to them are assets — federal bonds and treasury “notes.” The plain trend is for this dynamic to continue and to grow for generations to come.

Debt owns the future.

According to William Hogeland, this is all exactly as planned bv Alexander Hamilton’s “Scheme” of perpetual government debt, enriching a small class of wealthy investors who will loan the debt money to the government in exchange for assured payments of interest forever. No other investment is as high-grade, predictable and coveted. Our debt is their asset.