By Dennis Miller - February 13, 2025

We recently discussed the unsustainable debt our nation faces. Government debt has nearly doubled since 2018, topping $36 trillion.

Old guard politicos spent trillions, leaving future generations to foot the bill. For decades, irresponsible politicians borrowed and spent, kicking the can down the road. Soon interest expense will eat up the entire federal budget.

Like it or not, a major reset is coming. It makes little difference who won the election, the incoming administration must fix the sins of the past caused by the entire political class.

Government debt is a paper promise backed “by the full faith and credit of former politicians!” That does not create confidence….

Who holds this debt?

Wolf Street runs the numbers:

“The US national debt keeps ballooning at an amazing rate and has now reached $36.16 trillion.”

He estimates:

“US Government entities: $7.16 trillion. This …. consists of Treasury securities held by various federal civilian and military pension funds, the Social Security Trust Fund the Disability Insurance Trust Fund, the Medicare Trust Funds, and other funds.

US State and local governments, including in their pension funds: About $1.8 trillion

US Private Pension funds: $1.1 trillion

US Insurance companies: $0.63 trillion

US mutual funds About $5.0 trillion

US Individuals: About $3.1 trillion

Nonmarketable Securities Held by the Public: $0.59 trillion

‘Other’: $0.4 trillion”

Businessman making a oath while crossing fingers behind his back - When You Get A Guarantee, Check The Hands Behind The Back! - Miller on the MoneyGovernment “Trust Fund” is an oxymoron. They took our “premiums,” spent the money, slipping paper IOUs in the drawer. It’s a politician with his fingers crossed behind his back saying “trust me.” Scary, isn’t it?

Around $19.78 trillion in US government political promises is held in government and private pension funds. Much of the $5.0 trillion in mutual funds also likely is held in self-directed IRAs, 401k’s, etc.

While Americans thought they were saving for retirement, the government was spending the money. When the government “guarantees” a pension fund, they just add some more paper IOUs. Any default or dollar devaluation will devastate retirees.

On to the banking system.

“Federal Reserve: $4.36 trillion (Fed is owned by “member banks”)

US Commercial Banks: $1.73 trillion”

Since 2008, the Fed kept rates artificially low. Bank profits soared and the wealth gap of the top 1% grew by around 12%, from approximately $15 trillion to over $44 trillion. The rich get richer….

Much of that wealth is held in . . .

[SNIP]