Clear Fog Blog

Political musings from Warren E. Peterson

Paying OfF the National Debt

Posted by Warren Peterson on January 29, 2011

What the Federal Government needs is a good bill consolidation loan. We could pay off the Chinese and everyone else that has a piece of our collective hide and make one easy payment a month on a 30 year fixed rate mortgage. The amount we’d have to finance is increasing so fast it is hard to pick a principle amount but for calculation purposes, let’s use $14,100,000,000,000 or $14.1 trillion for short. My mortgage calculator won’t accept a number higher than eight digits but adding six zeros to the answers gets us into the billions and trillions we need. And those answers for a $14.1 trillion, 30 year, 5% mortgage is a monthly payment of just under $75.7 billion for a total cost, principle and interest, of $27,249,066,000,000. Call it $27.3 trillion but we will be debt free July 4, 2041, no fireworks, just a big mortgage burning party.

If we all chipped in, we could get this debt paid off. The Census puts our population at around 309,000,000 people. Divide that number into the $75.7 billion monthly payment, and you get about $245 a month for every man woman and child in the nation. That’s not much. I listened to the State of the Union address. We’re Americans; we can do it!

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2 Responses to “Paying OfF the National Debt”

  1. Fredc said

    Warren, you are absolutely right. We cannot settle the $13+ Trillion deficit by cutting everything but Defense, Medicare/Medicaid and Social Security. The only change to your formula I would suggest is that payments be indexed to income, so that gazillionaires pay more and the lower income folks pay less. $245/mo per person would be impossible to many, a simple nuisance to others. No fancy deductions or write-offs for those in higher income brackets. I would vote for that!

  2. Warren Peterson said

    My post was “tongue in cheek”, to be taken “with a grain of salt” and perhaps a too subtle attempt at satire but with a point to make. We need to stop deficit spending and start paying off a significant portion of our debt or the economic system will do it for us through inflation or default. Neither are good choices.

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