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US has no debt if you think about it

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posted on Jun, 16 2010 @ 12:37 AM
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Originally posted by Judohawk
I mean what are US citizens going to do when the US can't repay them?


Repay it yourselves. Just like Greece. Raise taxes. Cut spending. Cut entitlements. Tax 401ks and mandate the customer pays a fee to the banks for insurance.

Public assets, land. National Icons. It can all go.

In other countries. When the IMF restructures, it will often provide the people of an indebted nation with the means to sell off it's minerals in a down payment on it's debt (ie Iraq after the invasion) and grow some kind of cash crop. Coffee beans for example. Or opium.

Thats what US citizens are going to do when the US can't repay.

Or you could go to war and sacrifice someone else instead.

[edit on 16-6-2010 by belial259]



posted on Jun, 16 2010 @ 01:22 AM
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Originally posted by Judohawk
reply to post by belial259
 


I'm just talking about treasuries that the US owes to foreign governments.

Nvm, reread your post you're right.

I know the US debt is more than just foreign treasury holdings, however alot of the debt is public and private debt, isn't it? I mean what are US citizens going to do when the US can't repay them? There really isn't much, so it's not like the US is in a rush to repay those debts.



[edit on 15-6-2010 by Judohawk]

[edit on 16-6-2010 by Judohawk]


The USA has never been tardy or failed to deliver on one payment. Backed by the full faith and credit by the taxing power of the US Government is unfortunately the best thing you got in a cruel world.



posted on Jun, 16 2010 @ 01:27 AM
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reply to post by GreenBicMan
 


Because it can print money and buy it's own treasuries. Or as Max Keiser would put it. "Like a dog eating it's own vomit"

How long do you see that going on for?

It's not sustainable.


Budgeted net interest on the public debt was approximately $240 billion in fiscal years 2007 and 2008. This represented approximately 9.5% of government spending. Interest was the fourth largest single budgeted disbursement category, after defense, Social Security, and Medicare.[62] Despite higher debt levels, this declined to $189 billion in 2009 or approximately 5% of spending, due to lower interest rates. Average interest rates declined due to the crisis from 1.6% in 2008 to 0.3% in 2009


Wikipedia

Ok now you will notice your amount spend servicing the debt isn't that bad right now. But when you lift interest rate up to pre 2006 levels. The picture suddenly doesn't look so rosy.

And when you get up to 1970's levels. Which we very well might. Interest rates are going to go up to 18%.

Now the other thing you have to consider is what T-bonds really are. It's just an issue of debt in return for some capital, at a promised profit yield. The USA issued massive amounts of treasuries over the GFC. And they'll need to be rolled over in 3,5 and 10 years.

Looking down the road over the next decade. It's very easy to see the US economy becoming unsustainable and defaulting.

Pimco is saying the US AAA rating is going to come under stress within the next three years.

[edit on 16-6-2010 by belial259]



posted on Jun, 16 2010 @ 01:37 AM
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reply to post by belial259
 


Anything is sustainable when you control the media - biggest military - reserve currency.

Anyway, there are much deeper reasons why the FED is able to do this etc. Would you rather be in an environment that would prohibit that? It makes sense as it is quite efficient.



posted on Jun, 16 2010 @ 01:48 AM
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reply to post by GreenBicMan
 


What good does reserve currency status do for the US when the Yuan is pegged against it?

Very little I can see. There is no way to bridge the trade deficits and they've exploded to $800 billion a year. Debt might be sustainable if you're not in a global economy but you're witnessing a once in a generation or more transfer of wealth and power from the USA to South East Asia and nothing is going to halt this.

Many leading economists and geopolitical scientists have stated for years the US would lose supremacy and super power status by 2020, and it's 2010 now.

The next 10 years are going to see a very sharp decline in US living standards. Consider also you've got property prices falling. High unemployment. Huge foreclosure numbers. And the tax credit for housing has just ended.

All the Fed can even hope to do at this stage is keep interest rates as low as possibly for as long as possible and keep monetising the debt and trying to juggle it between books and off books.

Obama recently raised the debt limit. And he has engaged in a constant stream of small bailouts since the GFC and it's been predicted by more than a few that Bernanke will be forced to engage in anywhere from 1-10 trillion in QE sometime toward the end of the year, or very early next. Just to keep pumping liquidity through the system as private lending contracts.

[edit on 16-6-2010 by belial259]



posted on Jun, 16 2010 @ 01:49 AM
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Originally posted by purplemonkeydishwasher

Originally posted by abecedarian
The American people have no debt.
The Federal Reserve Board does, though.


No, your person is responsible for all the debt. The money was borrowed in your name.
\

Without your consent or full disclosure so it is a fraud. The Guy quoted in the OP is right there is no debt it is phony. It's a ponzi scheme created to steal the wealth of America and has worked wonders. The one thing he is wrong about is the US does not create its own money. A private corporation called the Federal Reserve does and then loans it to the US at Interest. This is where all your taxes go to pay the interest on this paper money created out of thin air. The Mafia wishes they had a scam this good! AND TAXES DO NOT PAY FOR A SINGLE SERVICE! They are a means of control and theft of your wealth along with inflation etc.

This is the problem the majority of Americans are so woefully ignorant of how the monetary system works that we continue to get screwed by these banksters! If we could restore the republic this debt would disappear back to where it came from; thin air!!!



[edit on 16-6-2010 by hawkiye]

[edit on 16-6-2010 by hawkiye]



posted on Jun, 16 2010 @ 02:13 AM
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reply to post by belial259
 


Well for now Ben B. sleeps with a smile on his face with the strong dollar currently. There will be no need to raise rates until EUR USD get sback above 1.30. If that even happens in the next 1 year +.

Strong dollar and no sight of inflation anywhere. Keys to our slow uphill recovery we got going.



posted on Jun, 16 2010 @ 02:25 AM
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The idea in the title of this thread is actually 100% correct because the U.S. Dollar is not created by the government. It is created by the Federal Reserve. The Federal Reserve is privately owned.
Need I say more?



posted on Jun, 16 2010 @ 03:14 AM
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Hey, still waiting for the US dollar to switch to the endisnighe dollar scheme.

Mine is much prettier! LOL!



posted on Jun, 16 2010 @ 12:41 PM
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reply to post by FortAnthem
 


Obviously he forgot to take Economics 101 on his way through school.



posted on Jun, 16 2010 @ 05:42 PM
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Thanks everyone for the replies to this thread. It made some interesting reading.




reply to post by hawkiye
 



The one thing he is wrong about is the US does not create its own money. A private corporation called the Federal Reserve does and then loans it to the US at Interest.


That's exactly what I thought when I saw this article but , was too tired to type it out in any coherent fashon.

The Fed owns our Debt. It is a PRIVATE CORPORATION owned by private citizens (fat cat banksters) and they own our debt (along with China). That economist needs to go back to school.

I should have named this thread; "This Economist is an IDIOT if you think about it."



posted on Jun, 16 2010 @ 06:44 PM
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When you think about it he is actually right. why do you think everyone wants to move the dollar of the world reserve currency?

Oh and you people talkin about inflation....thats actually a good thing in the long run.it makes it much more easier to pay off the 'debt'.



posted on Jun, 16 2010 @ 06:58 PM
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Well, certainly, a lot of "debt" is just virtual or imaginary, kind of like the value somebody puts on their house. Anything is only worth as much as someone is willing to pay for it.

If the United States suddenly decided that all the loans they've given out (or taken in) were void, there isn't a whole lot anybody could do about it. At that point, the accounting books would just be scrapped and started fresh. And what happened to all the money? The same thing that happens when Wall Street has a bad day, and drops a few hundred points. Billions are lost, but they never really existed anyway. So the total value of everything kind of drops.

That's why it's so easy for the United States to keep running in spite of carrying a huge deficit. It doesn't really exist if people just continue to do business as usual and ignore it.



posted on Jun, 16 2010 @ 11:07 PM
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It seems the US is going through the stages of grief when it comes to terms with loss.

This must be the denial stage.

Hopefully we can move on to acceptance soon and get the hardships we're inevitably heading for over with so we can move on as a nation.

I'm willing to accept collapse, I'm willing to accept a difficult period, but I'm not willing to accept and support more government sponsored fraud.

I guess if you think about it, it's just easier to believe everything will be ok.




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