14 Fun Facts About The U.S. Government's Massive Debt Problem

#15 : America doesn't even have enough money for its own citizens yet gives away billions to Israel like it's candy...

Makes so much sense...

Originally posted by PsykoOps
Number 12 rule explains it all. There is no problem with debt when you can buy it off yourself with money you can print from thin air.

Yes, but what about the new debt that the newly printed money just created? That would mean, you would have to continue to print more and more money with no end in site. Remember, it is a debt based dollar. There is interest tied onto every dollar printed that has to be paid back to the Fed for them having to print and loan it out.

reply to post by Unium


Er...maybe? Thanks. Hard to find an unbiased source anymore without going to the official government figures and trying to make order out of that chaos yourself. I'll take a look. Thanks.

reply to post by FiatLux


Not quite right.

All paper money is constitutionally defined as 'bills of credit' or debt, in that we agree.

[Sidebar to others: that's why we call it a '10 dollar BILL' or 'Federal Reserve NOTE' - Bill or Note - as in real money is due on it]. This is defined by the US Constitution in Article 1, section 8 "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures" and "To provide for the Punishment of counterfeiting the Securities and current Coin of the United States" and "To borrow money on the credit of the United States"; and section 9 "No State shall ..... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts...". In fact, until the 1960s all paper 'money' printed in the US said words to the effect that the paper was redeemable '"in lawful money". There's a whole Story here, but the general idea is that in times past, no one would consider currency itself money (let alone electronic digits), but rather just a negotible instrument for real money.]

Where we disagree is that money is currently a debt instrument. It is not. Beginning in 1933, with the seizure of gold by the US government from its citizens; and ending in 1971 with Nixon closing the Gold Window on foreign governments, the US dollar is, in a historical and factual sense, akin to company store script. As long as the store has stuff on the shelf, and you want to do all your shopping there, it isn't an apparent problem. However, once the shelves start emptying, and the next town over doesn't want your script for their goods, the farce is evident.

This whole string talks to the possibility of that happening - and soon! When it does happen, no one knows the outcome - that much is certain.

In my humble opinion, our great nation, with the entire West not far behind, is so far into debt that nothing in the status quo will cure the problem. However it is affected, there are only two ways out for the US (and West): either an outright default on its debt - which would really have to be ALL debt to level the playing field again, and keep the country from honest to god revolution; or purposeful hyperinflation. Both situations erase the debt, and allow a fresh start. However, the one key element in either scenario for it to be successfully ACCEPTED and allow life to go on afterwards, is the adoption of a 'new dollar'. Whether its a Global or North American dollar, or pure US is hard to say, but what I do feel fairly certain of is that, whatever new currency is established, gold will again be its basis. How exactly? What ratios? Don't know. But it must. Otherwise, there is no way to guarentee that the US or any other nation, won't simply do the same thing again in 5-10-20-50? years. There's a reason why the world operated on a GOLD standard for nearly all history, and we are soon to re-discover it.

reply to post by Sashromi


For the money issue, I stand corrected. For what the future brings with all of this, I very much agree with your take on it. I have stated, that if things don`t pick up within this month or by the end of the next with jobs and our economy, by the end of this year, if not sooner, I have a feeling the house of cards will have hit the ground. It is from the end of September on, that I see it all as not just starting to fall, but be in total free fall or collapse. It will be rough for a while, but I don`t feel it will be extreme to the point of people starving, or being kicked from their homes. As it will take a little time to set up a new money system. And yes, like you, I see it as backed by gold and silver again.

Maybe it's about time you went back to the 90% top rate of tax you had in the 1950's, get some of that money back. It's all very commendable philanphropists giving away their billions, but maybe they should of all been taxed more instead of them picking and choosing where their earnings go. The earnings that are only made possible by growing up with the American infrastructure

I wasn't sure where to post this

US Government 'hiding true amount of debt'
By Gregory Bresiger From: NewsCore September 20, 2010 9:09AM

"The Government is lying about the amount of debt. It is engaging in Enron accounting," said Laurence Kotlikoff, an economist at Boston University and co-author of The Coming Generational Storm: What You Need to Know about America's Economic Future.

"The problem is we're seeing an explosion in spending," added Andrew Moylan, director of government affairs for the National Taxpayers Union.

Mr Kotlikoff and Mr Moylan agree US national debt is much more than the official $US13.4 trillion number, but they disagree over how to add up the exact number.

Mr Kotlikoff says the debt is actually $US200 trillion.

Mr Moylan says the number is likely about $US60 trillion.

www.theaustralian.com.au...