The United States currently has a $19 trillion national debt. Approximately one-third of that debt paper – about $6 trillion – is held by governments in Europe, Asia, the Middle East and all over the rest of the world. At the end of this commentary is a list of countries holding US debt, and how much they hold.
Our national debt is greatly retarding our economic growth. US taxpayers currently fork over more than $400 billion every year just to pay interest on that debt, but without paying off any of the debt. If we cut our debt by 35% we can resume decent economic growth. And thus here is the Nikitas3.com proposal to slash 35% of our debt overnight:
We should simply inform these foreign governments that we are canceling our debt payments to them, and that we owe them zero.
Here are the reasons that we should do this:
*China ($1.2 trillion in debt paper) is a rotten communist dictatorship that has robbed America blind, both in unfair trade practices, and in the endless theft of US technology for which it has never paid a penny. We have helped to enrich China by being the largest market for its products. We should tell the communists in China that we are not going to pay our debt to them. After all their sick ideology has done irrevocable harm to the world economy for 67 years now. So let’s give them a taste of their own medicine.
*Japan (also $1.2 trillion) caused the world huge misery in World War II. The United States then helped to rebuild Japan after World War II after Japan started the war. The US then has paid hundreds of billions of dollars to keep troops in Japan for many decades to ward off a Soviet or Chinese communist invasion. Meanwhile Japan has built its economy totally on US technology, which it has taken for free. We should be repaid for all of this, and can do it easily by canceling our debt payments to Japan. It is just part of what Japan really owes us.
*Europe has never paid us back for spending tens of trillions of dollars to intervene to end World War II and for defending Europe for 46 years after World War II against the aggressive Soviet Union. The US also paid to rebuild Europe after World War II with the Marshall Plan. So now we should repay ourselves by canceling all of our debt payments to Europe.
*The United Kingdom holds $185 billion. But didn’t America rush to defend Britain from Hitler’s destruction and takeover? And save Britain’s very future? Yes.
*France holds $62 billion. But didn’t France surrender to Hitler in 6 weeks in 1940 without hardly firing a shot? And didn’t the United States then invade France on June 6, 1944 and fight our way town by town across France to vanquish Hitler over the next 14 months? With the loss of hundreds of thousands of American lives? Don’t you think that France owes us big time? So let’s tell France that our debt to France now is zero.
*South Korea holds $55 billion in US debt. Yet the United States expended 33,000 American lives in the Korean War (1950-53), and trillions in today’s dollars, to keep South Korea free from the communist North. Today we have 29,000 US troops in South Korea and large amounts of military hardware. Meanwhile all of South Korea’s current national wealth is built on American technology which South Korea has taken for free. So let’s cancel our debt to South Korea. They owe us everything. We owe them nothing.
*Mexico has $70 billion in US debt paper. But since we have taken in tens of millions of poor Mexicans, and give them jobs and every type of government handout over the last 100 years, and relieved the Mexican economy of their presence, we should tell Mexico that we are canceling our debt payments. We also have contributed greatly to the Mexican economy by being a strong neighbor economically.
*Russia holds $116 billion. Since Russia forced us to spend tens of trillions for defense under its communist government, then we should pay ourselves back by stopping all debt payments to Russia. After all $116 billion is a tiny fraction of what we spent to defend ourselves, and Western Europe and the world, from Soviet communism (more than $70 trillion in today’s dollars).
*Middle Eastern oil producers hold $255 billion. But it was American military might that expelled Iraqi forces from Kuwait in the Gulf War of 1991. Meanwhile the US military has helped to keep Saudi Arabia and the Middle East stable for decades. Yet then those same oil producers have harmed the whole world economy by artificially pushing up oil prices repeatedly, starting with the famous oil embargo of 1973. At the same time it is only American oil technology that made these nations rich in the first place. So let’s cancel the $255 billion debt.
*And to the rest of the world, Nikitas3.com says this: “Over the last 75 years, the United States has spent more than $100 trillion in today’s dollars on our military to keep the world free by fighting tyrants and keeping them bay. You have all benefited immeasurably from our military strength. America also has given to the world all of our modern technology for free from electricity to computers to essential systems like refrigeration (invented by Jacob Perkins of Massachusetts). The United States has been the economic engine of the world for 200 years. We have been a beacon of freedom and hope and taken in tens of millions of the world’s poor. We have dished out trillions in foreign aid. So now that the US needs a respite from our national debt then we are canceling our debt to you (total $6 trillion). And if you don’t like it, then pay us back for everything we have done for you, and stop using our technology. And have a nice time in the 17th century.”
And if canceling our debt harms our American ability to borrow in the future – which it will – then good. We should not be borrowing like this and should never do so in the future.
Here is a list from bonds.about.com from December 2014. Below are listed the countries that are the largest holders of US Treasury securities. All amounts are in billions of U.S. dollars. This list is from 2012, the latest year from which I found figures available in a copy-and-paste format, and thus the 2015 numbers are just extensions of these numbers:
• China, Mainland 1263.2 ($1.26 trillion)
• Japan 1209.7 ($1.21 trillion)
• Belgium 366.4 ($366 billion)
• Caribbean Banking Centers 308.4
• Oil Exporters 255.5
• Brazil 245.8
• United Kingdom 185.5
• Switzerland 177.6
• Taiwan 175.7
• Hong Kong 155.1
• Luxembourg 141.3
• Russia 116.5
• Ireland 112.1
• Singapore 93.1
• Norway 85.6
• Mexico 70.6
• India 68.7
• Germany 63.0
• France 62.3
• Canada 60.5
• Korea 55.3
• Turkey 50.5
• Thailand 46.9
• Netherlands 36.2
• Sweden 35.0
• Philippines 33.9
• Colombia 32.9
• Kazakhstan 32.7
• Italy 32.0
• Australia 31.2
• Poland 30.5
• Chile 26.4
• Israel 26.1
• Spain 22.3
• Denmark 15.3
• Vietnam 14.3
• South Africa 14.2
• Peru 13.0
• All Other 195.9
• Grand Total 5960.9 ($5.96 trillion)
Source: Department of the Treasury/Federal Reserve Board report, December 17, 2012.
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