And Then There's That Colossal National Debt
December 12, 1995
Even if the federal budget were balanced tomorrow, the U.S. would still be in hock to the tune of $5 trillion. And regardless of which budget plan is adopted, taxpayers will be faced with an additional $1 trillion in debt over the next five years - all of which must somehow, someday be paid off.
- Those who own a piece of the debt in the form of U.S. debt instruments include banks, insurance companies, pension plans, mutual funds, foreign governments and individual savers.
- It is not true that nations cannot go bankrupt; Brazil, Argentina and Israel have all at one time or another hung by their fingernails at the bankruptcy precipice.
- Nor is the industrialized first world immune, since Britain effectively declared bankruptcy in 1976.
Source: Perspective, "Myths About Debt," Investor's Business Daily, December 12, 1995.
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