The Best Way To Solve Our Economic Problems
If adopted, this solution will protect or improve the livelihoods of at least 80% of US Citizens!
The fundamental facts about "Deficit Spending" and our National Debt Problem
FACT #1: In 1913, a group of bankers misled Congress and President Wilson into legalizing a "Ponzi Scheme" which has now reached a point where it is politically, economically, and socially "tearing our nation apart." That Ponzi Scheme was legalized by the Federal Reserve Act of 1913 which surrendered our government's Constitutionally authorized right to "create money out of thin air" (WITHOUT incurring any debt) to a cartel of bankers who thereafter required our government to BORROW money whenever it wanted to create "new money" (i.e. money beyond what the government collected as tax revenues) at least with respect to paper money, checks, and electronically created money. Since then, those banks and their descendants have profited immensely from their takeover of our government's Constitutionally authorized right to "create money", while US citizens in general were made to suffer through a Great Depression, a Great Recession, high unemployment rates, and cuts in governmental services that otherwise would not have been "necessary."
FACT #2: Unless we "stop playing" that Federal Reserve debt-based monetary Ponzi game, it ABOSOLUTELY WILL eventually bankrupt the United States Government. That is because our government has ALWAYS required at least some "deficit spending" (new money spending) to pay its bills, even during the Clinton years when we ended up achieving "budget surpluses." This means that each year, our government has been paying COMPOUND INTEREST on EVERY paper money, check , and/or electronically created dollar that was created through the Federal Reserve System (using "borrowed money") since 1914! Our government has been "rolling over" its "national debt" each year, but it is still required to pay an EXPONENTIALLY GROWING AMOUNT of interest on that ever-growing total of national debt EVERY YEAR on EVERY SINGLE ONE of those Federal Reserve issued dollars, because that's the way compound interest works! That amount (presently about 7% of our government's annual expenditures) is now DOUBLING every four years, then every three years, then every two years, THEN MORE THAN DOUBLING EVERY YEAR! Get the picture?
FACT #3: Even if our government began "balancing its budget" each year, its annual interest payment requirements would continue to increase at an accelerating rate because of the money that has already been borrowed. As long as we keep playing that Ponzi game, the only way we will be able to "level out" the increases in annual interest payment requirements will be to cut spending and/or raise taxes enough to not only create a "budget surplus", but enough additional surplus to be able to pay those annual interest payment requirements WITHOUT incurring any further debt!
As you can see from our nation's budgetary history, that is HIGHLY UNLIKELY to happen-UNLESS WE SCRAP OUR FEDERAL RESERVE DEBT-BASED MONETARY SYSTEM! This can be done by repealing the Federal Reserve Act of 1913 (and all of its follow-on legislation), in which case the present "Federal Reserve" system could still survive by renaming itself the "Wall Street Reserve" system (which better describes how it has actually been functioning all along). Perhaps an easier and quicker way to do this would be for Congress to authorize the minting of "trillion dollar coins" which could then be minted (without incurring any debt) and deposited in various US Treasury accounts to pay our governments bills (again without incurring any further debt). The US Treasury could then "control inflation" by adjusting the rate at which it "mints" such coins.
This would also enable our government to start rebuilding our nation's infrastructure without incurring any further debt. This is how Red China has been paying for its wide-ranging infrastructure projects, because its government "prints its money out of thin air" without having to borrow any money. This may also explain to a large extent why Red China has not only been "eating our lunch", it has been "eating our jobs" and "eating our industries" as well. They have the HUGE economic advantage of not having to go into debt to create their money supply!
The longer we wait before withdrawing from the Federal Reserve debt-based monetary system Ponzi game, the more American livelihoods will be devastated! I'm pretty sure our Wall Street CEOs are well aware of this problem. This may even explain why those CEOs are "sucking as much money as they can from the system into their personal bank accounts" before this Ponzi Scheme finally crashes or vanishes. It may also help to explain why our large corporations are collectively "hording trillions of dollars in cash" rather than investing that money in US economic development (because of the economic uncertainty created by that Ponzi Scheme).
With a "government shutdown" looming and Republican threats to not increase our nations' national debt limit, AMERICAN VOTERS REALLY NEED TO KNOW THESE FACTS NOW!
Why are our news agencies failing to inform them about these FACTS?
(one grain of salt)
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Last modified on Friday, April 08, 2011