Black Hole Debt - 16 Trillion Dollars

[antitrust]

interesting nobody has crazy rants against other debts, total debt in dollars (L1 by the fed) equals 53 trillion, but only the gov debt is important to anti gov fanatics. While the real problem is the debt based money system. Which means that in order to have money in the economy someone has to accrue debt. Add that to the fact that compound interest which grows at a exponential rate while economies tend to grow at a linear rate, making the two incompatible. The economy can't grow fast enough to generate payments at compound interest. And of course paying off and defaulting of loans contracts the money supply, so money velocity can't make up the difference.

From antiquity to the Romans when a new ruler would come to power he would start with a debt jubilee. Not for the sake of a gift, but the realization that debt tend to grow faster than the means of payment. Inflexibility on part of the roman oligarchy to reset the debts brought about the dark ages.


“The greatest shortcoming of the human race is our inability to understand the exponential function.”

Albert A. Bartlett, physicist

 

[Mvector]

Quote from antitrust:

interesting nobody has crazy rants against other debts, total debt in dollars (L1 by the fed) equals 53 trillion, but only the gov debt is important to anti gov fanatics. While the real problem is the debt based money system. Which means that in order to have money in the economy someone has to accrue debt. Add that to the fact that compound interest which grows at a exponential rate while economies tend to grow at a linear rate, making the two incompatible. The economy can't grow fast enough to generate payments at compound interest. And of course paying off and defaulting of loans contracts the money supply, so money velocity can't make up the difference.

From antiquity to the Romans when a new ruler would come to power he would start with a debt jubilee. Not for the sake of a gift, but the realization that debt tend to grow faster than the means of payment. Inflexibility on part of the roman oligarchy to reset the debts brought about the dark ages.


“The greatest shortcoming of the human race is our inability to understand the exponential function.”

Albert A. Bartlett, physicist

This is exactly why I wanted to point out how the federal reserve is racking up loan debt that is on the back of the US taxpayers to backstop - just insane!

Scary math - www.newamerica23.com

 

[antitrust]

Quote from Mvector:

This is exactly why I wanted to point out how the federal reserve is racking up loan debt that is on the back of the US taxpayers to backstop - just insane!

Scary math - www.newamerica23.com

In a debt based money system the money supply must constantly be expanded to avoid a deflationary collapse. As the dollar amount of debt increase exponentially and an economy that grows linear inflation must make up the difference.

The fed is trying to stave off a collapse, it's the only option without monetary reform more debt must be taken out to make the payments on a exponentially growing debt.

The best system would be to spend (debt free) money into the economy.We had it once in the colonies.


Colonial Script the first American currency worked exactly like this. In fact it worked so good that the British outlawed it. After all the idea of having colonies was to enrich the motherland not the colonies. Benjermain Franklin said this was the main cause of the revolutionary war.

Franklin speaking about why the colonies were so prosperous

“That is simple. In the Colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one”.

Franklin after the ban of colonial script.

“In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed”.

Franklin on the cause of the war

“The colonies would gladly have borne the little tax on tea and other matters had it not been for the poverty caused by the bad influence of English bankers on the parliament which has caused, in the colonies, hatred of England and the revolutionary war”.

 

[LCFXTRADER]

Is the debt consider private dept (FRN) or public debt (US notes or coins)? I remember seeing somewhere that FRN can be redeemed for US notes. Would that not pay down the dept if it's private?

 

[MKTrader]

Quote from AKUMATOTENSHI:

I still want Ross Perot for President.

Perot's ideas were all over the map, ranging from "interesting" to "horrible." And he even got schooled by Vice Bore Gore in a debate! Talk about a couple of nutjobs going at it. That shoud've been a WWE production instead of a CNN one.

 

[Mvector]

with fed debt it is all backed by US taxpayer in the end - and that is unconstitutional and disgusting.

 

[StarDust9182]

Quote from Mvector:

with fed debt it is all backed by US taxpayer in the end - and that is unconstitutional and disgusting.

The strangest thing to me is that I think that the US taxpayers almost all think it won't be them that pays in the endgame. The poor ones say I don't pay taxes so I won't have to pay and the wealthy ones say I can use legal methods to reduce my taxes or move somewhere else and so I won't have to pay.

So one real problem is the separation of the people who pay from the people who engage the debts. Similar to a conspiracy - THEY will pay, not me. Just who do most people think is the THEY?