reply to post by marg6043
And taxes and more taxes are just a form of control to keep the poor even poorer and take their money because the people in charge already know what
I'm about to say. It has nothing to do with paying off the national debt, because the national debt can't be paid because that much money doesn't
Anytime someone mentions raising taxes to pay the national debt just let them know it's pointless. Might as well lower taxes instead because the debt
will never and can never be paid off that way.
That's the joke of it all, the M2 money supply is now only right under 9 trillion dollars and when you add the M3 money supply into it, it's just a
little less than the 13 - 14 trillion we owe on the debt now let alone what we will owe by then. In other words, paying off the national debt would
take EVERY SINGLE US DOLLAR IN EXISTENCE and then we would still OWE SOME!
The reason is because the way our money is created. Fractional reserve banking. When a bank takes out a loan from the reserve it's considered demand
for the money. How much money is worth depends on how much demand there is for it. But you have to pay back interest on the loan. But the money to pay
the interest IS NEVER CREATED! That means you always owe them more back than even exists.
The only way to fully pay back the loan is for someone else to come along and borrow even more money. Hopefully you will be able to get some of that
money to pay back your loan. BUT THEY STILL OWE THEIRS. The only solution is hopefully a third person will come along and so on and so on. That's
where our money comes from.
It never ends. But the whole time the debts only get bigger. Someone always owes more money than the last guy did. The government is one of those
guys. The only way they can pay that debt back is if someone else comes along and borrows more than 19 trillion dollars, and the US government gets
their hands on some of that. That's not likely to happen anytime soon.
As for paying the national debt? Well the US is broke. It can't pay it. But we have a fiat currency which means it's basically just paper. There's
two ways to print that paper.
One is to take out another loan and use it to pay back the first loan. But that doesn't get us anywhere. If we take out a $19 trillion loan to pay
off our debt then guess what? We still owe somebody $19 trillion!
The other way, is just to print more money. But guess what? That causes inflation because every time you print money, each dollar is worth less. It's
supply and demand. The easier money is to come by, the less it's worth. The more money there is, the easier it is to come by. Same reason nobody
wants to pick up a penny. It ain't worth nothing because you can find those everywhere right?
In the last two years alone, from the all the money the government has printed on their presses for the bailouts and things like that, the dollar's
monetary base has increased almost 150% in two years! Luckily for us we were in a period of deflation. But eventually that little printing they did
might just cut the value of the dollar in half or more and if so we can expect prices on EVERYTHING to at least triple. They've printed so much money
that the reserve has said they're not even going to report how much they printed anymore so nobody KNOWS!
In fact if we don't see prices triple, that's even worse, because that means we're still having heavy deflation which means the economy isn't
recovering like the news media is telling us it's going to. Either way, recovery or not, if you're poor, you're screwed.
If it's deflation you won't be able to get a job, and if the economy inflates it won't matter cause your paycheck won't pay the rent.
The whole system is screwed and the only way to get out of the national debt is to change our entire monetary system, because as of now almost all the
money in existence is LOANED money. There is no free money to pay off the loan. That means the only way to pay the national debt is to print so much
money the US dollar isn't worth anything anymore, or borrow more money! It's friggin insane.
[edit on 9-6-2010 by tinfoilman]
[edit on 9-6-2010 by tinfoilman]