The $26 Trillion Treasury Securities Investments touted as the United States National Debt is a Monumental Fraud

 

The $26 Trillion Treasury Securities Investments touted as the United States National Debt is a Monumental Fraud

At this very moment, second by second, the US Debt Clock (https://www.usdebtclock.org) is flashing in bold red, $26 Trillion plus, as the United States National Debt. It's a reminder, warning all Americans that the so-called United States National Debt is getting out of hand. What a deadly bald-faced lie and deceit. This $26 Trillion Treasury Securities Holdings, the so-called Federal Government Debt, falsely touted as the United States National Debt is a Monumental Fraud. As of June 11 2020, American Businesses and American Households held $19.39 Trillion worth of United States Treasury Securities, while  Foreign Countries like China, Japan, and other International Entities held $6.61 Trillion worth, making up the total $26 Trillion Treasury Securities Holdings or Investments. These are investments, not United States National Debt.

To eliminate this confusion between National Debt and Investments, we need to know the real meaning of National Debt. What exactly is a Nation's or National Debt? For clarity, let's first break down National or Nation's Debt into its components, Nation and Debt. Hence, what is a Nation? A Nation is a large group of people who inhabit a specific territory and are connected by history, culture, or another commonality. What is Debt? Cambridge Dictionary defines Debt as "something, especially money, that is owed to someone else. Investopedia defines Debt as "an amount of money borrowed by one party from another". This second definition is clearer and more suitable for our needs. Thus, a Nation's or National Debt is an amount of money one Nation borrowed from another Party or Nation, outside itself. A Nation cannot borrow money from itself because the Nation owns the Money, just as a Person cannot borrow money from him- or her-self because the person owns the money. This particular Debt is a National Foreign (External) Debt. 

There is also a National Domestic (Internal) Debt, where one group of Citizens and Entities borrowed money from another group of Citizens and Entities within the Nation. Subsequently, we can clearly surmise that every Nation including the United States has a National Domestic (Internal) Debt and a National Foreign (External) Debt. The following Table shows the National Debt of the United States and the Treasury Securities Holdings, as of June 11, 2020. 

Description	Domestic or Internal	Foreign or External
United States National Debt	$53.81 Trillion	$0.00 Trillion
Treasury Securities Holdings	$19.39 Trillion	$6.61 Trillion
Total	$73.20 Trillion	$6.61 Trillion

Let's assume that both the Domestic and Foreign Treasury Securities Investments or Holdings are part of the United States National Debt, then the Total United States National Debt is $73.20 Trillion + $6.61 Trillion = $79.81 Trillion. These facts are explicitly described further below. 

If the United States National Debt including the Treasury Securities Holdings, is $79.81 Trillion, why all the noise that the United States National Debt is $26 Trillion. It just makes no sense. 

There is no scintilla of doubt about the United States Domestic Debt of $53.81 Trillion, where one group of Americans and American Businesses owe another group of Americans and American Businesses, all within the United States. The core issue is the United States Foreign Debt. Whom does the United States owe? Whom did the United States borrow money from? Is it China, Japan, UK or Sweden? If so, how much and on what grounds? As fully detailed further below, the United States owes no Foreign or External Debt because the United States did not borrow any money from China, Japan, UK,  Sweden or any other Foreign country or Entity. 

Before going into details, let's first focus on the common Inertial Frames of Reference or the Paradigmatic Assumptions for the so-called United States National Debt of $26 Trillion. 

The first common Paradigmatic Assumption is that the Federal Government is the Nation and thus, the Federal Government Debt is the Nation's or National Debt. Expressing this mathematically, 

(1) Nation = Federal Government or Government 

and hence, 

(2) Nation's or National Debt  = Federal Government Debt or Government Debt 

This is blatantly false. The Federal Government is not the Nation. It is just one of three acting Agents representing the Nation. The other two are the Household and Business. In other words, the correct Inertial Frame of Reference or Paradigmatic Assumption for the Nation should be that it consist of the Household, Business and Government. Expressing this mathematically, 

(3) Nation = Household + Business + Government 

Subsequently, 

(4) Nation's or National Debt = Household Debt + Business Debt + Government Debt 

Equation (4) above is the correct Inertial Frame of Reference or Paradigmatic Assumption for the United States National Domestic Debt. 

The second Paradigmatic Assumption is that United States Treasury Securities Investments or Holdings are the National Debt. Again, expressing these mathematically, 

(5) Nation's or National Debt = Treasury Securities Investments or Holdings 

Once more, this Inertial Frame of Reference or Paradigmatic Assumption is totally false. Even if the External or Foreign Treasury Securities Holdings of $6.61 Trillion are assumed to be the United States Foreign Debt, the Internal or Domestic Treasury Securities Holdings of $19.39 Trillion are not. This $19.39 Trillion is a United States Domestic or Internal Debt, if we assume the Treasury Securities are Debt. 

The fourth common Paradigmatic Assumption is that the Federal Government Budget is the Nation's or National Budget. Once more, expressing this mathematically, 

(6) Nation's or National Budget  = Federal Government Budget or Government Budget 

Again, this is completely false. Since the Federal Government is not the Nation, the Federal Government Budget cannot be the Nation's or National Budget. In consonance with equations (3) and (4) above, 

(7) Nation's Budget = Household Budget + Business Budget + Government Budget 

and thus, 

(8) Nation's Budget Deficit = Household Budget Deficit + Business Budget Deficit + Government Budget Deficit 

The fifth and final common Inertial Frame of Reference is that the Federal Government's cumulative Budget Deficits and Surpluses are the National Debt. Mathematically expressing this, it becomes, 

(9) National Debt = Cumulative Federal Government Budget Deficits and Surpluses 

This is also patently false. Since the Federal Government or the Government is not the Nation, the Cumulative Federal Government Budget Deficits and Surpluses cannot be the National Debt. Besides, Equation (9) contradicts Equation (8). 

In summary, the following are the correct Inertial Frames of Reference or Paradigmatic Assumptions for the United States National Debt, 

(3) Nation = Household + Business + Government 

(7) Nation's Budget = Household Budget + Business Budget + Government Budget 

(8) Nation's Budget Deficit = Household Budget Deficit + Business Budget Deficit + Government Budget Deficit 

(4) Nation's or National Debt = Household Debt + Business Debt + Government Debt 

All the above are explicitly detailed in my book, entitled, America, Wake Up! We are Destroying the American Economy and Ourselves. 

Based on these correct Inertial Frames of Reference or Paradigmatic Assumptions, as of June 11, 2020, only the United States Domestic Debt of $53.81 Trillion for Households, Businesses, and Governments exists as the United States National Debt. The $26 Trillion Treasury Securities Investments or Holdings by American Businesses, American Households and Foreign Entities are not the United States National Debt. 

To buttress this point that the $26 Trillion is not the United States National Debt, let's assume that, instead of buying Treasury Securities from the Federal Government, Americans and Foreigners bought Real Estate or High Technology Companies in Silicon Valley with the $26 Trillion. Would we still regard these American and Foreign-owned Real Estate and High Technology Companies, a Federal Government Debt or United States National Debt? Of course NOT. Then why is the purchase of United States Treasury Securities our Federal Government Debt or National Debt. It makes no sense. 

Finally, let's come back to the core question of this article. Whom does the United States owe? Whom did the United States borrow money from, outside itself? Nobody and no Entity. The United States has no National Foreign (External) Debt, period. It only has Domestic Debt of $53.81 Trillion within its borders. Thus, the so-called $26 Trillion Federal Government Debt, touted as the United States National Debt is a monumentally deadly Fraud that is destroying the Economy of the United States and American lives.

Bright Harry is the author off America, Wake Up!, where he debunks the Federal Government Budget Deficit and National Debt as mere illusions, albeit extremely deadly ones, with facts, logic, mathematics and history. He succinctly describes what the Real National Deficit is - a shortfall in the money in circulation and in the hands of American Citizens compared to the Wealth of Goods and Services we have already Produced.