Most Americans do not realize that the national debt is divided into two parts, what the government calls “Public Debt” and “Intragovernmental Holdings” (IH). Without that understanding, they have no chance of realizing that the latter, the $3.5 trillion IH section, is completely fraudulent and nothing more than a way to tax and double tax us.

Secondly, many of those who do understand that there are two distinctly different sides to the national debt also believe the government’s fantastic lie that says the IH side is where “the government owes itself” and is therefore meaningless, or that this side is a “wash” where the taxpaying public has little to worry about. Nothing could be further from the truth. Money from the taxpaying public is the only way to pay down the national debt – any portion of it.

The truth is that the IH side of our current debt is composed of approximately 137 so-called “trust funds” (see list) each holding “special” nonmarketable bonds that are demands on the U.S. Treasury. These “securities” or “investment holdings” can be cashed-in anytime the government finds it necessary or simply wants to withdraw real money from the Treasury’s general fund of current taxpayer dollars and money borrowed (a future tax on taxpayers or their children).

Every month, the U.S. Treasury publishes an account of the deposits and withdrawals from these so-called “trusts.” Table 8 of the “Monthly Treasury Statement” neatly summarizes these deposits and withdrawals month by month plus comparing them with the “fiscal year to date” and the totals held. This is a report largely ignored by economists, think tanks, and the news media insofar as any analysis or reporting to the public is concerned.

Within this table you can also find the so-called “Social Security trust fund” currently standing at $1.9 trillion and 23 percent of the complete national debt. It is also composed of two separate accounts – the “Federal Old Age & Survivors Insurance” and the “Federal Disability Insurance” trust funds – both deriving their “receipts” from payroll taxes.

You might also notice that in May the “Federal Disability Insurance” program had a shortfall where “Outlays” were greater than payroll tax “Receipts” which means that Social Security turned to the Treasury’s general fund to withdraw $546,000,000 to cover benefits. You paid for this even though the Federal Old Age & Survivors fund had a $4.8 billion surplus that was spent on war, invasions, and other things as fast as it came into the Treasury and before nonmarketable markers were added to the trust.

According to the great “baby-boomer” hoax, this is not supposed to happen until at least 2009. Since payroll taxes are a direct reflection of the job situation and wages in this country much of this is due to the fact that we are currently $4 billion below last year’s receipts at this same time and that it’s another reason Congress, and particularly the Senate, is anxious to get illegal immigrants included in making payroll tax payments.

Social Security isn’t the only area where you are being ripped off.

As usual, the Federal Employees Life & Health fund went to the Treasury’s general fund for $353,000,000 which it then counted as a surplus increasing the “trust” by that amount in the most obviously fraudulent and crazy bit of accounting for a program that never has any “receipts” or payments by the people receiving benefits. (See history)

Similarly, but much more expensive, the Federal Employees Retirement System (FERS) had a shortfall of $3,101,000,000 that was covered by cash from the general fund just as it is every month except September when it receives a mysterious influx of enough “special” bonds to put it ahead for the year. (See history)

Medicare (Federal Hospital Insurance) cost you $3,281,000,000 in May of 2006; Airport and Airways $334,000,000; Veterans Life Insurance $94,000,000; Highways $30,000,000; and the Hazardous Substance Superfund $105,000,000 because the money from fines against polluters was spent elsewhere and their mess still needs to be cleaned up, so you pay to have some company like Halliburton do it.

All together, taxpayers paid $7,461,000,000 in May to cover taxes, fines, and so forth that had already been paid but the money spent elsewhere. You paid these taxes again plus and interest that had accumulated.

It’s only a matter of time before the public wakes up to what’s been going on for years and supported by both political parties, republicans and democrats alike. Foreign nations that have been loaning us money are already beginning to realize that the American people have less and less of a way to pay them back and legitimate treasuries are becoming more difficult to sell. Like the cuckolded husband, the taxpayers may be the last to recognize what’s been going on. It's all there in black and white, direct from the U.S. Treasury.