Could Congress pass a bill that would simply cancel our National Debt?

 It's an attractive idea. but we can't really do that. Over the years, the US Government has convinced "we the people", through various maneuvers, to establish different trust funds. Now there are some 170 different trust funds that "we the people" have established for various things, such as fixing our roads and building new airports. We also have our Medicaid trust fund, and our Social Security trust fund, and our Government Employees retirement funds. We Americans have put almost three trillion dollars of hard-earned money into these trust funds, and I'm not talking about imaginary money, because each week we see the deductions coming out of our paychecks from the current money we earn. But what many people don't realize is that our weekly trust fund "contributions" are remitted right into a big bucket. The cash is not segregated into the specific trust funds. The Government takes all of the cash that pours into our various trust funds every day, and replaces that money with IOUs, called Treasury bonds. So, three trillion dollars of the National debt is owed to trust funds that are earmarked for various things. Now if you look at the Highway Trust fund, there's supposedly 160 billion dollars in there. So why are our roads in such terrible condition? Because the principal is never used to repair the roads, only the interest. To spend the principal would create additional inflation and would not be politically viable. That's why some people think this whole national debt is a mirage… because these 170 trust funds don't seem to have any money in them. They are filled with IOUs.

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