Who gets the INTEREST we pay on the NATIONAL DEBT & Is it TRUE that all the INCOME TAX pays ONLY that INTEREST

Question

Please respond to this 5 min clip: AMERICA - KISS YOUR MONEY GOODBYE
http://www.youtube.com/watch?v=D_K6FlNdtnA

Answer 1

The interest on the national debt is 19% of the federal budget or about 6% of GDP, so each year most of the money the government borrows gos to pay the interest on the amount the government borrowed in the past. The interest is paid to the holders of the bonds, about half to American citizens and the rest to foreign bond holders. A big share is paid the the Governments of other nations that holds our bonds. China, Japan and the UK all have large holdings.

Answer 2

Anyone person or country that buys Treasury bonds is loaning the Fed $ to be paid back at a later date, then the Feds borrow more money to pay that back.

Yes, I've read that it takes all the $ coming in just to pay the interest on the debt.

Then you hear all the idiot politicians promising FREE this that and the other to whoever will vote them into office.
Think they won't raise your taxes? Think again.

This country won't last much longer at this rate if we don't
WAKE UP!

Answer 3

Read Jerome Corsi's book, "The Late Great USA." It'll tell you more about the coming North American Union between the USA, Canada and Mexico. There are three things that need to happen: 1. The dollar need to fall, 2. The borders need to be open between the countries and 3. There needs to be a privatization of our ports and roads. All three are happening as we speak.

Answer 4

Interest is paid to the debt holders, which can be American citizens or foreign countries who buy our bonds. The amount of interest we pay on the debt is about $500 billion a year, which is a sizable chunk of our annual budget.

BTW you Federal Reserve conspiracy guys have no understanding about how the system actually works.

Answer 5

IRS takes in $3 Trillion per year from all sources.
I don't think the interest is that much every year.