The Debt Owed by the Central Banks

 The private central banks are insolvent when their debt of 2 quadrillion, held by the Global Debt Facility, is taken into account. I am the Overseer Mandate Trustee of the Global Debt Facility which holds the 2 quadrillion in Treaty of Versailles bonds issued in the 1930's. It is my responsibility to address the debt owed by the central banks as well as other debt. Questions: 1) The US national debt is getting close to $22 trillion. This is a little larger than the size of the US economy. Financial experts warn that the impact of the rising national debt and federal deficit is very real. Where is the flood of red ink coming from? And how does it affect the economy? 2) The total debt jumped 85 percent to $10.6 trillion during former President George W. Bush’s two terms, another 88 percent to $19.9 trillion under President Barack Obama and is continuing to balloon under President Trump. Why has the national debt crisis become a political no man’s land that neither party is willing or able to tackle? 3) The terms deficit and debt often appear together in government reports on the US economy. The two concepts are different but are closely intertwined. In other words, the federal government must borrow more in order to cover its years of budget deficits. The Treasury is set to borrow $1 trillion this year to finance the deficit. This follows tax cuts and government spending increases under the current administration. Is the economy growing at the expense of the rising deficit? Wouldn’t that upset the growth in the long run? 4) The deficit, as large as it is now, amounts to 3.9 percent of GDP. But the Congressional Budget Office forecasts the deficit will steadily grow and reach 9.5 percent of GDP in 2048. Experts say the deficit trajectory will likely bring a major financial crisis if not a political one if not addressed. What is your analysis? 5) Things haven’t always been this bad. In 2000, the federal government had a surplus of $236 billion, according to the Treasury Department. But the deficit hit $779 billion in the fiscal year that ended September 30. If one looks at the trend, things started to go south since the US launched the post 9/11 wars. How much of the crisis do you attribute to the US foreign policy and military interventions? 6) The rising debt and deficit is not caused by a shortage of revenue. Rather it is the result of increased government spending. Some point the finger at Social Security, Medicare, Medicaid and other health-care programs. Many Republicans say Congress should target those programs for cuts to address the debt issue. The debate comes amid tax cuts for corporations and the wealthy. How do you connect the dots? Is cutting social programs the answer?

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