Monday, October 12, 2009

Who Gets the Interest Paid on the National Debt

Lawrence Kadish writes here about the magnitude of the interest paid each year on the $12 trillion national debt. He argues that the burden of interest on the debt of the Treasury is large, burdensome, and ultimately unsustainable.

What Kadish does not talk about is who it is that receives the interest paid each year. Who buys the U.S. Treasuries, and is therefore entitled to the interest payments that Treasuries promise to pay? Every day of every week, interest payments are made as they come due on the national debt. Real checks are mailed to real people who deposit the checks in banks, adding to their annual income and wealth.

Don't you think the US Treasury should have to report to the American people annually who got all that interest paid to them?

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