Posts Tagged ‘national debt’

The LAST Republican President, nuked the world economy, instead.

Published by John Walsh

There is no surprise that the banking crisis has occurred. It is the result of deliberate government policies.

The administration of President George W Bush has attempted to pursue two significant policies which have a certain tension or, perhaps, contradictory nature.
The first was to enforce American power on countries designated as inimical to it and the second was to cut tax rates mostly for the wealthier parts of society and business interests.
The tension between these policies is that military power is extremely expensive and reducing taxes significantly affects government’s resources with very little in the way of compensation.
The cost of the War in Iraq has recently been estimated by the Nobel Prize Winner Joseph Stiglitz, together with Harvard economist Linda Bilmes, as amounting to three trillion dollars, once the costs for wounded and traumatized service personnel are included. How did the Bush administration aim to pay for their foreign policy objectives?

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A lot of people are very upset about the rapidly increasing U.S. national debt these days and they are  demanding a solution. What they don’t realize is that there simply is not a solution under the current U.S. financial system. It is now mathematically impossible for the U.S. government to pay off the U.S. national debt. You see, the truth is that the U.S. government now owes more dollars than actually exist. If the U.S. government went out today and took every single penny from every single American bank, business and taxpayer, they still would not be able to pay off the national debt. And if they did that, obviously American society would stop functioning because nobody would have any money to buy or sell anything.

And the U.S. government would still be massively in debt.

So why doesn’t the U.S. government just fire up the printing presses and print a bunch of money to pay off the debt?

Well, for one very simple reason. That is not the way our system works.

You see, for more dollars to enter the system, the U.S. government has to go into more debt. The U.S. government does not issue U.S. currency – the Federal Reserve does.

The Federal Reserve is a private bank owned and operated for profit by a very powerful group of elite international bankers.

If you will pull a dollar bill out and take a look at it, you will notice that it says “Federal Reserve Note” at the top.

It belongs to the Federal Reserve.

The U.S. government cannot simply go out and create new money whenever it wants under our current system.

Instead, it must get it from the Federal Reserve.

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