Let's make a couple of assumptions, one, that there is one "child" (under 18 years old) for every 3 adults, and also that only half of the adult population actually pays taxes. These 2 assumptions I am sure are not spot on and someone will correct me to the decimal point but they are probably close to the reality. So, assuming the above, we get to a "number" of how much the deficit was "attached" to each actual "taxpayer" of $8,000 for 2013. Now we are talking some money of significance...and this was just for 1 year.
But wait, the "deficit" was $680 billion yet the national debt increased by $794 billion. So the actual increase in debt amounted close to $10,000 per each "taxpaying" citizen. $10,000! How would you feel if you woke up tomorrow and the balance on your credit card was magically (and tragically) $10,000 higher...AND it was not a "fraudulent" charge? Yes I know, you may consider it a "fraudulent charge" but that's just too bad...it sticks to the bill and you will be required to pay it.
Please remember that this "tragic discovery" that you all of a sudden owe another $10,000 on your credit card...is for just one year alone. You will again wake up Oct. 16th of this year and find out how much more your credit card balance will rise...and the year after that etc. This is awful isn't it? Another 10 years and it will total $100,000 not including interest and assuming that we don't again start piling up trillion of dollars annual additions like the last four years.
But "we owe it to ourselves" so who cares right? Umm, no, we don't "owe it to ourselves." We owe roughly 1/3rd of our debt to foreigners and another 25% or so to the "Federal Reserve." In case you haven't been paying attention, the "Federal Reserve" is not "federal" at all. The Fed is a private corporation owned predominantly by European "monied families." Between the two, foreigners and the Fed, we owe more than half of our debt "NOT to ourselves or U.S. institutions!"
Last year the Fed bought 150% more than ALL foreigners combined as explained here by Zero Hedge. Foreigners purchased some $221 billion worth of Treasury securities while the Fed purchased $552 billion. Doing a little bit of basic math here we come up with a total of $773 billion or a whopping $21 billion less than the total increase in debt...$21 billion! Do you see where I'm headed? Other than from foreigners (which include dubious accounts such as those from the "Caribbean") and the Fed, only $21 billion worth of Treasuries were placed elsewhere. "Elsewhere" like Joe the plumber buying them or domestic insurance companies or banks or whatever.
This is a very BIG problem, not the "elsewhere" part nor the "foreigner" part (although lack of foreign buying is really scary because for years they were THE buyers), no, the problem is that the Fed has been forced to purchase all of this debt. They have been "forced" because there is no one else, they have been forced because the Treasury absolutely must issue debt and borrow because tax revenues cannot sustain the system. They have been forced to purchase the debt ...for the simple reason that Richard Russell has explained so so many times...they MUST "inflate or the system dies!" The Fed has no choice in this matter because by definition, the interest that must be paid in the future does not currently exist...so it must be "created"...and the only way to create it is for the Fed to digitally print which is what they do when they purchase Treasuries.
Going just a little further, was the Fed not to purchase whatever is offered but not "spoken for" then the Treasury would have what is called a "failed auction." This would create a panic where existing owners of our debt would panic sell because of the realization that there are not enough buyers. Not enough buyers for "new stuff" not to mention what the existing creditors hold.
The old phrase that "we owe it to ourselves" is wrong. Not only is it flawed logic because if you cannot afford to pay your debt which is supposedly owned (and an asset) by you then what you own is worthless, it just isn't true anymore. We don't "owe it to ourselves," we also owe a large percentage to foreigners and the Fed who are now THE ONLY buyers left...because "we" can no longer afford to fund our current operations much less fork out money to purchase new and "necessary" debt. This phrase "we owe it to ourselves" is nearly the same logic as 2 drunks at closing time telling each other "don't worry, I'll drive."