Topic: Is the US national "debt" an illusion? - page 2. (Read 6704 times)

As long as you can print money, you can always pay back whatever amount of debt, that's not the problem. Only a country like Greece who can not print money for themselves will run into huge problems

However, those printed money's initial ownership is strange: It should belong to governments, but in reality they all belongs to central banks, which in turn is owned by regional reserve banks. So banks actually pay back the debt using printed money, at the same time those money become the new debt of the government, so that government's debt is ballooning (They borrow money from central bank to pay debt)

Anyway, banks can write off those debt just like they create money, so the debt is really an illusion. It is a way to keep the game running, but the game designer can easily change the rules and still make it work

But foreign investors in US government bonds will not write off those debts, they will require a 100% repayment plus interest, so central banks will print some money to pay them in future

This games runs as long as people accept payment in fiat money, if the trust for fiat money is gone, then the system will collapse

well all countries has debit ,,, those allowed people to make them houses and pay in 40 years.... they can buy a computer buy internet buy a car ... the thing is if the loans wouldnt be allowed do you really think we would have a better life?

Paper money is just debt slave money. How do you pay off the debt if every cent you borrow you have to payback in interest? I borrow a $1 now i owe you $1.10 so I borrow $2 to pay you back but now I owe you $1.30... If the government printed its own money it would be a different story but any president that had that idea has been killed. Abe Lincoln and John Kennedy.

I tend to agree with many of the forward-thinking viewpoints that are shared on forums like this. However, I feel there is misinformation being circulated regarding the US national debt. The core question that must be answered: What is the national wealth?

Private wealth in the US is almost $70 trillion. But dig deeper: What is the mineral wealth in our national parkland? What are the Rocky Mountains, Mendocino County, and ANWR worth? What is the aggregate oil wealth in public lands? What is the value of the US military in the jungle of international relations?

I argue that the $18 Trillion national debt pales in comparison to the national wealth of the United States. There is no better example of this than the revenue generated from Obama's successful energy exploration campaign.

When you take a look at the massive swaths of valuable land held by the federal government, it becomes clear that the total federally-owned real estate, oil, minerals, etc. within the borders of the USA could be valued in the quadrillions of dollars.

One thing has become increasingly clear to me: the United States HAS debt, but it is really not IN debt.

The purpose of the Federal Reserve is to govern the people through the money supply. The threat of hyperinflation or deflationary depression is exaggerated. The resource wealth of the United States - as well as the large, rich, taxable population - provides a backstop that keeps our currency strong, even in expansionary environments.

I believe this backstop is far more valuable than prior generations' use of precious metal reserves. I concede gold and silver are more tangible, but defining the national wealth by reserves of scarce metals is nothing more than a form of social brainwashing intended to keep resource-rich Americans feeling poor.

Conspiracy theorists and John Birchers who measure the national debt against gold reserves are engaging in monetary child's play. However, the Federal Reserve's ability to spend the past decade in crisis while hiding the money supply (M3) from the American public is brilliant. A brilliant scam that must come to an end in the United States, as it has in central banks throughout Europe and across the globe.

The strength of the dollar in FOREX markets in the wake of QE3 invalidates many conspiracy theories. As a market student and participant, I believe the dollar is legitimately strong and would remain strong through QE4, QE5, and QE6.

Is it time to end the myth of false scarcity? Is the easy answer - a dramatic increase in the debt ceiling to fund the Small Business Administration, Farm Service Agency, and regional banks - the best path for the US economy?

Recently an interesting statistic was released. The USA has fewer corporations today than 40 years ago, despite having three times as many citizens. If "corporations are people," do we just need more "people?"

Or is a multi-decade Japanese-style depression a better way to break the will of American men, break the daughters of the revolution into prostitution, seize American's weapons, and ultimately rejoin the British Crown and join the New/Old World Order?

I ask that question only half-sarcastically, because that appears to be the the intent of the current world order, and the path the United States is headed. Especially if either Hillary "Forester de Rothschild-RHODam" Clinton, or Jeb "Lehman is now Barclays" Bush are elected president.

This is serious business.

Sure, a new monetary system would be nice. But is a total revolution possible? Perhaps it is time to submit to reality, and finally admit that Reagan was right.

Mine eyes have seen the glory of the coming of a new hashtag.

Matthew Libman
Charleston, SC

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Febo (and everyone)

Yes, debt is dangerous!  Way too many people go into debt irresponsible way, to support consumption now rather than building a base for more productivity.  Perhaps the only exception would be for a mortgage that you are sure you can afford.

Shakespeare was right, better not to get into debt (nor loan).  Unless you have thought it through.

It is too easy to become a slave when in debt.

U.S went to collapse this year, after this stronger dollars .

it seems that despite the huge debt, usa are still on track, and can recover from it anyway, they can probably liquidate the first debt by rising another one and keeps the circle active

so yes, you could consider it an illusion

As long as people trust USD and use it to measure value, the debt can always be paid back by printing USD. For most of the people, including people in other countries, that trust is almost unshakeable. So debt is the least to worry about

Sure, banks have printed 5x more USD and diluted the USD value dramatically, but for average people, they will never raise the price of their products/services based on USD money supply, their pricing is depends on cost and competition, and since we have continuous improvement over efficiency due to automation and computer, the price might even drop