$13,000,000,000,000
Political cover? Why don't they just blame it on Dick "deficits don't matter" Cheney?
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As of Tuesday, the debt stood at $11.95 trillion, staring at senators amid a roiling health care debate in which critics have seized on the potential costs of the overhaul. Unlike those of the House, the Senate’s rules do not allow it to automatically increase the debt with its adoption of the annual budget resolution. That puts senators in a tough position politically. And if the Senate balks at the increase, Treasury Secretary Timothy Geithner has warned that the slow economic recovery could collapse, as investors around the world would sharply lose confidence in America’s abilities to meet its credit obligations.
“This president inherited, in some ways, an economic fiasco,” said conservative Democratic Sen. Mary Landrieu of Louisiana. “It’s not going to be a pleasant vote, but it may be necessary until we can get back on track.”
The problem
is that if we reduced the National Debt to zero, we would have no money left in the system. The entire fiat money system of the Fed is based on debt. If the debt is payed off, there is no more money. In this way, the Fed ensures a steady stream of interest payments with no fear of the loans being payed off.
We would have to switch to a different currency before this happens.
I know
Money is debt.