They’re funded, by the future stream of tax revenue.
And they’re not real liabilities in practice. Real liabilities can’t be changed. If I owe someone $1,000, I can’t unilaterally say to that person, “I say I now only owe you $600”.
The international-banker-controlled Federal and State governments, on the other hand, can, in the future, pass legislation (or in the pResident’s case, simply sign a banker-written executive order) that says, effectively, “we were going to pay you $1,000, but we’re only going to pay you $600.”
But the scam-elected politicians, being minions to bankers, have been ordered to never ever reduce the obligations of government. Never.
The bankers order them to adhere to this rule, of constantly ratcheting up government spending and never decreasing it.
Why ?
Because spending more than is received in taxes causes governments to go hat in hand to bankers to borrow. It’s been going on for centuries. The top-level advisors to governments have been part of the banking world. The head of state views “his” bankers as his key ally, while all along the banker views him as a rube ripe for being controlled by them. He is only their expendable, replaceable puppet, in their view, a vassal through which they, in fact, rule over the population. They convince him to go to war, they convince him to sue for peace. They convince him to regulate. They convince him to spend on public works.
Governments are CUSTOMERS of bankers.
Like addicts are customers to drug dealers, or, more appropriately, like borrowers are customers to loan sharks, bankers never ever want their government customers to get any inkling of an idea that they a) won’t repay or b) won’t continue to borrow more.
It’s usury, but on a national scale. Why loan shark one citizen at a time when you can loan shark the entire population of a nation ?
Even though government could turn away from the bankers with 2 easy steps: a) pay off what’s owed but borrow not one more penny and b) aggressively prosecute them and get them put in jail and publicly reviled so they don’t start massive agitprop campaigns to push said government out of office.
National governments, being sovereign and thus having the right to coin their own money, could pay off national debts by simply creating their own money to do so. States and provinces, of course, don’t have that option, but must pay off only through the use of tax revenue.
What freedom it would be to have those debt monsters off our back.
...in Reuters’ own words, “the savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.” What is left unsaid is that the “usage” will be on a purely involuntary basis, at the discretion of the “union”, and can thus best be described as confiscation.
The source of this stunner is a document seen be Reuters, which describes how the EU is looking for ways to “wean” the 28-country bloc from its heavy reliance on bank financing and find other means of funding small companies, infrastructure projects and other investment.