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It Is Mathematically Impossible To Pay Off All Of Our Debt

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Money - Public DomainDid you know that if you took every single penny away from everyone in the United States that it still would not be enough to pay off the national debt?  Today, the debt of the federal government exceeds $145,000 per household, and it is getting worse with each passing year.  Many believe that if we paid it off a little bit at a time that we could eventually pay it all off, but as you will see below that isn’t going to work either.  It has been projected that “mandatory” federal spending on programs such as Social Security, Medicaid and Medicare plus interest on the national debt will exceed total federal revenue by the year 2025.  That is before a single dollar is spent on the U.S. military, homeland security, paying federal workers or building any roads and bridges.  So no, we aren’t going to be “paying down” our debt any time in the foreseeable future.  And of course it isn’t just our 18 trillion dollar national debt that we need to be concerned about.  Overall, Americans are a total of 58 trillion dollars in debt.  35 years ago, that number was sitting at just 4.3 trillion dollars.  There is no way in the world that all of that debt can ever be repaid.  The only thing that we can hope for now is for this debt bubble to last for as long as possible before it finally explodes.

It shocks many people to learn that our debt is far larger than the total amount of money in existence.  So let’s take a few moments and go through some of the numbers.

When most people think of “money”, they think of coins, paper money and checking accounts.  All of those are contained in one of the most basic measures of money known as M1.  The following definition of M1 comes from Investopedia

A measure of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, checking accounts and Negotiable Order of Withdrawal (NOW) accounts. M1 measures the most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency.

As you can see from the chart below, M1 has really grown in recent years thanks to rampant quantitative easing by the Federal Reserve.  At the moment it is sitting just shy of 3 trillion dollars…

M1 Money Supply 2015

So if you gathered up all coins, all paper currency and all money in everyone’s checking accounts, would that even make much of a dent in our debt?

Nope.

We’ll have to find more “money” to grab.

M2 is a broader definition of money than M1 is, because it includes more things.  The following definition of M2 comes from Investopedia

A measure of money supply that includes cash and checking deposits (M1) as well as near money. “Near money” in M2 includes savings deposits, money market mutual funds and other time deposits, which are less liquid and not as suitable as exchange mediums but can be quickly converted into cash or checking deposits.

As you can see from the chart below, M2 is sitting just short of 12 trillion dollars right now…

M2 Money Supply 2015

That is a lot more “money”, but it still wouldn’t pay off our national debt, much less our total debt of 58 trillion dollars.

So is there anything else that we could grab?

Well, the broadest definition of “money” that is commonly used is M3.  The following definition of M3 comes from Investopedia

A measure of money supply that includes M2 as well as large time deposits, institutional money market funds, short-term repurchase agreements and other larger liquid assets. The M3 measurement includes assets that are less liquid than other components of the money supply, and are more closely related to the finances of larger financial institutions and corporations than to those of businesses and individuals. These types of assets are referred to as “near, near money.”

The Federal Reserve no longer provides charts for M3, but according to John Williams of shadowstats.com, M3 is currently sitting somewhere in the neighborhood of 17 trillion dollars.

So even with the broadest possible definition of “money”, we simply cannot come up with enough to pay off the debt of the federal government, much less the rest of our debts.

That is not good news at all.

Alternatively, could we just start spending less than we bring in and start paying down the national debt a little bit at a time?

Perhaps that may have been true at one time, but now we are really up against a wall.  Our rapidly aging population is going to put an enormous amount of stress on our national finances in the years ahead.

According to U.S. Representative Frank Wolf, interest on the national debt plus “mandatory” spending on programs such as Social Security, Medicare and Medicaid will surpass the total amount of federal revenue by the year 2025.  That is before a single penny is spent on homeland security, national defense, paying federal workers, etc.

But even now things are a giant mess.  We are told that “deficits are under control”, but that is a massive hoax that is based on accounting gimmicks.  During fiscal year 2014, the U.S. national debt increased by more than a trillion dollars.  That is not “under control” – that is a raging national crisis.

Many believe that that we could improve the situation by raising taxes.  And yes, a little bit more could probably be squeezed out of us, but the impact on government finances would be negligible.  Since the end of World War II, the amount of tax revenue taken in by the federal government has fluctuated in a range between 15 and 20 percent of GDP no matter what tax rates have been.  I believe that it is possible to get up into the low twenties, but that would also be very damaging to our economy and the American public would probably throw a huge temper tantrum.

The real problem, of course, is our out of control spending.

During the past two decades, spending by the federal government has grown 63 percent more rapidly than inflation, and “mandatory” spending on programs such as Social Security, Medicare and Medicaid has actually doubled after you adjust for inflation.

We simply cannot afford to keep spending money like this.

And then there is the matter of interest on the national debt.  For the moment, the rest of the world is lending us gigantic mountains of money at ridiculously low interest rates.  However, if the average rate of interest on U.S. government debt was just to return to the long-term average, we would be spending more than a trillion dollars a year just in interest on the national debt.

So the best possible environment for “paying down our debt” that we are ever going to see is happening right now.  The only place that interest rates on U.S. government debt have to go is up, and our population is going to just keep getting older and more dependent on government programs.

Meanwhile, our overall debt continues to spiral out of control as well.  According to CNBC, the total amount of debt that Americans owe has reached a staggering 58.7 trillion dollars…

As the nation entered the 1980s, there was comparatively little debt—just about $4.3 trillion. That was only about 1.5 times the size of gross GDP. Then a funny thing happened.

The gap began to widen during the decade, and then became basically parabolic through the ’90s and into the early part of the 21st century.

Though debt took a brief decline in 2009 as the country limped its way out of the financial crisis, it has climbed again and is now, at $58.7 trillion, 3.3 times the size of GDP and about 13 times what it was in 1980, according to data from the Federal Reserve’s St. Louis branch. (The total debt measure is not to be confused with the $18.2 trillion national debt, which is 102 percent of GDP and is a subset of the total figure.)

As I discussed above, there isn’t enough money in our entire system to even pay off a significant chunk of that debt.

So what happens when the total amount of debt in a society vastly exceeds the total amount of money?

Is there any way out other than collapse?

You can share what you think by posting a comment below…

  • kfilly

    Nope, we are a run away freight train gaining speed before we get to Dead Man’s Curve. This is not going to end well. As usual, this is another great article.

    • MichaelfromTheEconomicCollapse

      Thank you for the kind words kfilly. :)

    • SunnyFlaSnotress

      You know other countries owe us money too This is a very one-sided, biased article.

  • fortunato

    Not my problem and I don’t care how much money our government racks up in debt.

    After all what can we the people do about it? Nothing. Absolutely nothing.

    This problem will never end and the debt will only grow larger and larger. All governments all over the world are the same way. State and local too.

    If the majority of people started doing the underhanded things that the elites do I can guarantee you that the scales would tip back in our favor not theirs.

    They did a study on the human brain and it showed that the more money a person has the greedier and self centered they became. Google it to read the article.

    • df NJ

      You’ve probably heard that power corrupts. I read in a psychology book an idea called the metamorphic effect of power. The idea is whenever someone successfully influences another person it changes the powerholder’s psyche. We the powerholder develops a contempt for the person they perceive they have power over. The greater the power the more contempt. Eventually the powerholder thinks the people under their influence as non-human being insects who can be killed or squashed without any moral consequence.

      • gts58

        You’ve just described Obama perfectly!

        • Cannonfodder2010

          He described EVERY politician perfectly. Donald Trump would take it to a much higher level.

    • none

      Thank God President Obama has been taking his multi-million dollar vacations. At taxpayer expense.
      It will not cost the taxpayers anything! Since they cannot pay it back.
      And with all the money that he has and will make from his investments in the stock market. Along with his pension and other investments he should end up doing very well.

      • goldfinger

        Not only that but we the people also fund the generous pension and health insurance plan that congress choose for themselves.

        Heck even in congress if you get convicted of a crime you never lose your pension or health benefits.

        Isn’t American wonderful?

      • Thomas Keith

        “It will not cost the taxpayers anything! Since they cannot pay it back.” First, you need an English lesson, since you obviously don’t know the difference between a clause and a sentence. That aside, yes, there will be payment in the form of a deeper, longer depression.
        _aleph_

    • Nemnor

      fortunato, you stated – “…After all what can we the people do about it? Nothing. Absolutely nothing…”.

      Actually, Governments do as they do, as long as the mass of the people let it be. As long as the people do not have the will and the courage to demand the change they want.

      However, people are kept under “control” by using various means to divide and distract them. The major Media Networks and the Educational system are the two main non-violent “arm” the Ruling Class use to “control” the masses. AND, where the non-violent “arm” fail, then the violent “arm” (i.e. the Army and Police) is used accordingly.

      So it takes UNITY and a lot of COURAGE for the masses to have the change we want, and we CAN do something, but it begins with having the WILL to do what we wish to do..

      • http://www.SexyInYour60s.com/ Joan Bunney

        Don’t forget the corporate toxic food chain which leads to the mass addiction to pharma mafia given the dis-ease/obesity epidemic that fuels medical costs….everything IS connected to ‘dummy’ down the masses.

    • gts58

      Your second paragraph says it all.

    • Thomas Keith

      You don’t care how much debt your government racks up? Fool, it’s you and the rest of the citizenry who the world will look to for repayment. The world honors the US’s request for more credit (for no. at least) because of the US government’s ability to tax its peoples. Keeping your head in the sand won’t save you.
      _aleph_

  • Catman

    This is why the politicians have no plan to do deal with the national debt: it cannot be fixed. They already know what you so well explain. The economies of the world depend on more debt through fractional reserve banking and treasury bond purchases to create more money to pay the interest and keep from sliding into a depression. This will not end with a fiscal policy. There is no brake on this rig. I recently had a dream where I was driving a car on which the brakes did not work. Very frustrating. Well, I have no debt, but perhaps it speaks to the sense of being carried along with little recourse other than to just keep the car in the middle of the road and try not to hit anything or anyone. I think a lot of us feel like that in life: we have no control, we can’t get off the roller coaster, and one way or the other we’re all in this together.

    • Christoph Weise

      Politicians are not in the drivers seat. It is certain that 99% of them do not understand money policy and central bank politics. It is the central banks that drive the developments

  • Rukander

    Only 4.3 trillion before Ronald Reagan and de printing money.

  • df NJ

    When disaster strikes most Americans stick together and help each other. My hope is when the time comes we rise above our petty partisan politics and unite as one people with one country under God.

    We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

    Are we really going to let a small group of sadist European bankers destroy this once great country?

    • Christoph Weise

      The path is set by the FED, although agreeably the Bank of Japan (BoJ) was the first to introduce QE. European central bankers look to be followers.

      • df NJ

        Japanese sadists are just as bad as the European sadists.

    • sherlock32555

      Yep Just look around you and you will answer your own question. The people stood by and let it happen. Their is no self preservation anymore. It was lost years ago when the people knew that the government would take care of us.

    • jsmith

      Don’t forget to include the tribal 5th column that owns the country.

      • Mike

        Whose the tribal 5th column?

        • jsmith

          Are you playing coy or just being ignorant? I’m sure someone will enlighten you.

    • Nemnor

      df NJ, a “…small group of sadist European bankers…” (as you put it) are only a symptom of a much wider and more fundamental cause of the issues facing the USA.

      The main root cause of the worsening socioeconomic issues in the USA (and the World), is – the Capitalist system itself – which has became decadent, is at a “dead end” and is NOT able to generate long-term recovery by economic means alone.

      The world-wide Capitalist system became decadent as it reached a level of general over-production. With over-production, it became harder and harder for the Capitalist to sell their products/services, for even what the Capitalist consider a reasonable profit.

      Hence, the reason the Capitalists (irrationally) engage more and more in “Share Repurchase”/”Stock Buyback” (to ARTIFICIALLY raise the value of a company’s stock), and/or invest in “financial bubbles”, “derivatives” and other exotic “financial instruments” (even lend money to people that are not credit worthy), and with many of these “investments” having little or not relations to the real economy!!!

      There is NO going back to the “good ole days” of the USA, or going back to “real”/”pure”/”free market” Capitalism, because Capitalist USA already passed it’s progressive stage and is now at a “dead end”.

      The real solution can only be with a fundamental change away from Capitalism, as no amount of “reforms” could ever fix Capitalist USA.

  • HeyAHuman

    This has been an economic system built upon debt since the creation of the Federal Reserve. It would have been easily known beforehand that this would burst and cause chaos. Why has it been allowed for so long? Insane.

    • Bill

      Same reason we have an imposter in the White House. We the sheeple do not have the fortunes needed in order to run for an office that would allow us to make a difference. Voting is too manipulated to make a difference.

      Robots are the future of sheeple who don’t require daily feeding.

  • Bob332

    This country is now officially in the toilet. Will the last person to flush, please turn off the bathroom light.

    • nekksys

      Just have the attendant do it as you flip him your last coin…

  • Christoph Weise

    We have long passed the point at which repayment of debt could have been possible. Maybe it was never possible. I have heard that there is always more debt in the system than money to repay it. That is the nature of the fractional reserve system. Central banks world wide have decided 2009 not to bother about racking up debt. They are printing money and providing it to financial institutions as needed. We have now two different circulation systems. One is the old system. It comprises of individuals and corporations. The traditional debt limits apply. Bankruptcy and insolvency are possible. Than we have the newly created second circulation system. It comprises of central banks and systematically important lenders. These organisations can not bankrupt or become insolvent. They have escaped from the ordinary circulation system and are eternal. De facto we are faced now with a two class system. This is the departure from market economy. And it is problematic in many aspects. Some of them: (1) The change to our system has never been properly explained and is kept as a secret (2) The political bodies never made a decision on this change (and thus it is illegal and because of its illegality central banks are engaged in criminal activity) (3) Before the law all people should be equal. This principle is violated by the introduction of the principle of eternal economic life and could only be trumped by the introduction of eternal biological life for a limited set of individuals. The question arises if the second circulation system is indeed eternal. There may be limits but I never saw a comprehensive discussion of the topic. I presume it would take a single global currency to avoid a systemic default. But I am not sure. It looks like the can kicking strategy has a very long life.

    • GSOB

      “I presume it would take a single global currency to avoid a systemic default. ”

      Me too.

  • JailBanksters

    Ironically, Every dollar in your Wallet had to be loaned into existence for you to have it, it represents Debt not Wealth and it belongs to the Banking Cartel. You could take that dollar back to the Club FED to extinguish that loan, but you have to pay the Interest on that Dollar. Where do you get the Money from to pay back the Interest on that Dollar, the Club FED of Course. And then you’d have to pay the Interest on that as well. By all definitions of a Ponzi Scheme, the Club FED is a Ponzi Scheme where you pay one debt by creating another debt to infinity. This ensures that nobody can never own more than the Banking Cartel. It’s an absolute brilliant scam, and it’s been going on for 100 years, with one re-invention for Gold-Standard and another time for Credit Cards to overcome the 45 year limit on Fiat Money.

  • Richard

    I can’t help wanting to thank you, Michael, for adjusting the manner of your prose in recent posts. They have become a joy to read. You seem to have removed all the cliches and annoying repartee.
    Maybe nobody else appreciates this but I can only express own, continued appreciation for the “New You”!
    Thank you.

    • Mike

      Didn’t you write this before?

  • nobody

    Actually Michael is wrong: it’s perfectly possible to pay off the entire debt in less than 5 years. All they need to do is to cut all welfare and military funds and eliminate all tax discounts.
    But that will never happen.

    • nekksys

      This idea doesn’t account for paying off PERSONAL debt as opposed to GOVERNMENT debt.

      And, as someone already pointed out, when the first $11T is paid back, the “money” it represents disappears, therefore a vast amount of the M1 will vanish into thin air leaving only the hard currency which can not be distributed sufficiently throughout the population to effect an further debt payments.

      In other words, no matter how you slice it, we’re all pretty much F’d in the A thanks to the recklessness of our government and the banksters.

      • nobody

        So a bunch of banks will go under – more power to the big ones, you lose, they win.
        Actually it won’t disappear since it has never existed to begin with and it will just be created elsewhere.
        BTW your hard currency has stopped having any power a long time ago, now it’s just a bunch of paper and it’s worth only what the issuing bank says it’s worth. And no, gold by itself isn’t worth anything since it can be taken from you at the whim of the government.

        • nekksys

          Hard Currency = Paper and Coin… I wasn’t referencing buying power either. I was referring to the ACTUAL M1.

          Please try to keep up.

          • nobody

            Actually that’s incorrect: a hard currency is a means of payment (usually a currency but it can also be a commodity) that is well and widely trusted and used for savings. Also called safe-heaven currency.
            Please use the correct terms from now on.

          • nekksys

            Typical… When folks like yourself start losing the debate, you shift and try to muddy the waters. Nice try, though! Considering your previous statement “BTW your hard currency has stopped having any power a long time ago” in light of your most recent redefinition of “hard currency,” I guess that means all commodities in my possession are worthless as well? Last I checked, a pound of iron was still a pound of iron and still possesses the same value.

            Again, the M1 was what I was referencing. The M1 is the actual, hard currency in circulation. M1 doesn’t consider commodities as part of the equation.

            Please, if you choose to redefine something, make sure you haven’t used the same term previously… And do keep up with the conversation.

          • nobody

            No, a pound of iron is an asset, that has it’s own value. No, M1 isn’t a representation of hard currency, it’s just an index detailing the total amount of money in an economy – which includes absolutely everything, even those that exist only as electronic vapour.
            Please try to keep up, or at least get a basic economy/banking course at your local free college.

          • nekksys

            Awww… Look! It can read (a little)… Again, judging by the current value of the M1, there’s no way it includes everything you claim.

            Furthermore, you are still forgetting that once debt is repaid, ALL the currency it represents (whether real or “electronic vapour”) vanishes. Once the repayment process is underway, the available currency supply continues to diminish eventually leading to a ZERO currency state WITH remaining debt…

          • nobody

            And you know there’s no way because a little birdy told you so, right? Let’s be real, M1 is a government decided value and you will never have a say on it.
            Wrong again, it doesn’t disappear, it goes into the bank’s accounts as an asset, which is in turn used to create even more money by lending it/investing it at least twice its value. The problem appears when they no longer have legit ways to invest it so they invent things like the derivatives to absorb the surplus of money they have created.
            Yes you can, you can claim it will be used to make 1000 knives and sell derivatives on that in excess of $1k on it. For everybody that $1 lump of iron will now be worth $1k – and this procedure is entirely legal and legit. We’re not talking about honesty here, remember.

  • alan

    Where are those trillion dollar coins they had about two years ago?

    Mint a couple hundred of them and we’re good.

  • XSANDIEGOCA

    As long as we refuse to return to the Gold Standard, we shall continue to suffer. China understands this implicitly. All they have to do to drop us without firing a shot is to just threaten to tie the Yuan to Gold. Game Over. (BTW, the interest on our debt to China underwrites their entire Defense Budget!) Today the $20 bill is the equivalent to the $5 bill of my youth. Now there is serious talk of replacing the visage of Andrew Jackson, the man who saved America in the War of 1812, on that bill with a Slave. How utterly appropriate.

    • Genada

      Andrew Jackson would despise the idea of being on a bank note and especially of the modern day version of the one he destroyed.

      Fun fact about Jackson: Only president EVER to retire the national debt.

      • XSANDIEGOCA

        I had forgotten that!

      • https://plus.google.com/?partnerid=ogpy0 Dwain Dibley

        Back when Andrew Jackson was the president Gold was the money, somewhat hard to come by and it would be reasonable to assume a national debt. Today the money is Fiat, and all they have to do is print it. How can a government that can print the money to pay it’s bills, ever get into debt? And, what is it borrowing and what does it owe? This whole government “debt” thing seems kind of fishy to me…..

      • Tranqual

        He killed the central bank and said it was his most important accomplishment. Then the bankers crashed the economy and blamed him.

    • jsmith

      You seem to have connected the dots X, however you are probably very young because I’d like to think of the $20.00 bill as the new $1.00 bill. Back in 1963 whe I was 14, I could go to downtown Lost Angeles by bus to the movies, and see 3 matinee flics including milk duds and still have money left over from the 4 silver quarters my mom gave me! And yes, how appropriate that you noticed Andy Jackson being replaced by a slave. Why, Andie’s greatest quote is that he killed the bank and is one of America’s greatest heroes!
      And to quote Michael’s “The real problem, of course, is our out of control spending” yet we have one of our greatest termites in the form of John McCain and the others who want to increase defense spending because the Russian’s and primarily the Chinese are building up their defense spending, with our money. Insane.
      I was kind of hoping for a gradual collapse due mainly to money printing and inflation, but I’m afraid things are speeding up as the symptoms of impending crisis are being overlooked and exacerbated by our moronic president and termitic Congress. Either they are puppet fools, or part of the conspiracy to destroy our country. America is kaput!

      • XSANDIEGOCA

        Ah, those were the daze! Actually, you are right. In my mind today’s 20 was yesterday’s 5. Anyway, too many “disturbances” in the Force. One good shove will do it, send the boulder crashing down the hill. Pick your scenario. Another terrorist attack. China moving on Taiwan. Iran heaving one into Israel. Then it will be “look out below!”

        • Zenithon

          And still if I pull out a $100 bill and try to pay for something, more times than not I get to hear that they won’t take anything larger than a $20. You can’t hardly get lunch or buy a movie ticket for less than $10 bucks and stores still act like that $100 bill is worth something. I could buy more at a grocery store with a $20 bill 25 years ago then I can get today with that c-note. Crazy.

    • Tranqual

      Money masters know what they are doing.
      “Inflation has now been institutionalized at a fairly constant 5% per year. This has been determined to be the optimum
      level for generating the most revenue without causing public alarm. A 5% devaluation applies, not only to the money earned this year, but to all that is left over from previous years.

      “At the end of the first year, a dollar is worth 95 cents. At the end of the second year, the 95 cents is reduced again by 5%, leaving its worth at 90 cents, and so on. By the time a person has worked 20 years, the government will have confiscated 64% of every dollar he saved over those years. By the time he has worked 45 years, the hidden tax will be 90%. The government will take virtually everything a person saves over a lifetime.”

      — G. Edward Griffin

      “By remaining behind the scenes, they (the Rothschilds) were able to avoid the brunt of public anger which was directed, instead, at the political figures which they largely controlled. This is a technique which has been practiced by financial manipulators ever since, and it is fully utilized by those who operate the Federal Reserve System today.”

      – G. Edward Griffin

      “[The] abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit…. In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holdings illegal, as was done in the case
      of gold…. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves…. [This] is the shabby secret of the welfare statist’s tirades against gold. Deficit spending is simply a scheme for the ‘hidden’ confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.”- Alan Greenspan in an article he wrote in 1966.

      And then Greenspan went over to the dark side and worked for the Fed.

      “By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and, while the
      process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls . . . become ‘profiteers’, who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished not less than the proletariat. As the inflation proceeds . . . all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism,
      become so utterly disordered as to be almost meaningless.” – From pages 220-233 of The Economic Consequences of the Peace (1919), by John Maynard
      Keynes.
      You probably already know all this.

      • XSANDIEGOCA

        I did. I will send this on. States it all in one place.

        • Tranqual

          personally I don’t think there’s anything we can do. Ultimately it’s God’s judgment. When Jackson killed the central bank they just crashed the economy. It would take a miracle for most people to even understand the screw job. If any leader came on the scene and tried to kill the Fed the bankers would just constrict the money supply crash the economy. Frankly I believe we are in the end game. Only repentance and revival would give us more time as a nation. Sadly I’m not optimistic about that either. We are already seeing the birthing of the apostate church. Trusting God will take care of the faithful remnant. Not looking forward to the days ahead. I wish Christians would have their eyes opened. We may be able to take part in a great harvest after America goes down. Maybe then people will listen…to the GOOD NEWS!!

          We shall have all eternity to celebrate the victories, but we have only the few hours before sunset in which to win them.
          Amy Carmichael

          • XSANDIEGOCA

            Agreed. Sadly, we face Gotterdammerung but that may be God’s plan too.

  • XSANDIEGOCA

    1971. We went off the Gold Standard. What happened next was utterly predictable. A dollar today is worth a fifth of a 1971 dollar. Nixon was the One!

    • Preparequickly

      A dollar will be worth just as much tomarrow as it was today!!!

    • https://plus.google.com/?partnerid=ogpy0 Dwain Dibley

      The legal tender dollar is worth exactly the same as it has always been worth, 100 cents. Now, the bankster’s “Credit Dollar” is another matter, it’s only worth 4 cents (excluding Wall Street and shadow banking system generated credit). But because people are too stupid and lazy to discern the difference, they equate the two as being one in the same and are apparently willing to die economically, firmly holding onto that erroneous belief.

    • Tranqual

      Nixon was just following orders. The price of being president. They are all sock puppets. Obama, McConnell and Boehner all spooning together are the latest screw job is a perfect example. They are all treasonous traitors willing to sell their souls for a mess of pottage. O is dumb enough to think he’s creating his communist utopia.

      • XSANDIEGOCA

        The betrayal on the TPP is truly astonishing! I would like to see a Third Party if only to vent my frustration. As I see it, Hillary wins. I write this with great sadness.

        • Tranqual

          voting for an agreement we aren’t allowed to see! Is this America? We will see what congress will do, I’m not holding my breath.

  • Horiboyable .

    It seems that the USA is using the Roman Template of self destruction. Over spend on your military and run up large debts. What next? Well Rome turned on its own people for cash which has happened many times in different societies. This leads to less freedoms and economic totalitarianism or they will take you to war to divert the issue. I think by the end of the year the average US citizen will begin to see how your government will treat you. I myself find this whole situation a little funny because I left my country of birth because of economic mismanagement of the state, that used laws to limit my freedom. I immigrated to the UK only to find myself facing the same situation. The UK has debts that they can never pay back and it will be interesting to see how they deal with it here. The honest way is to default. It is a bit sad when you have to keep moving countries just to survive.

  • Genada

    Only choices on debts that can not be payed is either to default or to inflate them away.

    You can pay off the debt anytime you wish, it doesn’t mean it will be worth anything tho.

    • df NJ

      It’s not going to end well.

  • Hank Sullivan

    Michael, the kicker is that each dollar that, because the entire currency supply is borrowed into existence, when one of those dollars gets paid back to the original issuer, which is your goal, that dollar ceases to exist. And so once $11 trillion, M2, is paid off to the original issuer, THERE’S NO MORE CURRENCY IN CIRCULATION TO RUN THE ECONOMY. Like the Germans during the Battle of the Bulge, the economy would completely run out of fuel. And we would still have $49 trillion left to pay.

    • HedgeHog

      Read Modern Money Mechanics, and part of the picture becomes clear, think of it this way, and it becomes crystal;
      if you and I are talking, and I ask to borrow a dollar, and there is no other money in existence, and you want to charge me 10 cents of interest, if I give you back the dollar to pay off the debt, where am I going to get the 10 cents?
      because every monetary instrument in circulation has debt attached to it, is the reason why the debt can never be repaid. Put the power to take care of the money supply back in the hands of congress, dissolve the fed, and several other adjustments that need to be made, and we might have a chance of coming out of this relatively unharmed.

  • Maneb

    Hyperinflation is the answer. COMPLETLY destroy savers and persioners. Reward the reckless and lazy drug addicted street bums. That’s the way out. That’s what the U.S. HAS been doing. Become Zimbabwe! Obama’s model in well run Africa. His ancestral homeland. Transforming America! Congratulations suckers. Oh, did I mention martial law and tyranny…coming up soon. Just look around. Who cares about the rule of law or the constution? Again, that’s for poor suckers. Catch me if you can. Marx and Alinsky showed the way.

  • nekksys

    Wow, that’s relevant… A lot has changed since that article was written in 2011…

    • SunnyFlaSnotress

      Thank you for your style of constructive criticism /s
      While up-to-date numbers are difficult to find, the link DOES point out the blind spot in the article that makes it unbalanced and somewhat irrelevant.
      It totally ignores the fact that the USA is also owed massive amounts of money.

  • guest

    How is it mathematically possible to get so far into debt that it’s mathematically impossible to get out of debt?

    • df NJ

      google “fractional reserve banking system”

      We just can’t compete with the Federal Reserve’s power to put us into poverty.

      “Give me control of a nation’s money and I care not who makes it’s laws” — Mayer Amschel Bauer Rothschild

    • folgers22

      It’s government. Anything is possible.

      • folgers22

        Some of the brightest thinkers on their side actually believe debt is a sign of strength. They think the more debt we run up, the better it is for us.

    • JackNMeovslo

      AND THE ANSWER IS …. Democrats~

      • g13man

        and republicans !
        they both agreed for each others spending , so they are both culpable !

    • Thomas Keith

      That’s easy. Fool your creditors into thinking you actually can pay back the loans plus interest.
      _aleph_

  • folgers22

    Anyone heard of Beppe Grillo? He’s a comedian/politician in Italy whose rants against debt and the EU have made him a hero to many Italians. He did a semi-serious bit years ago in which he explained Italy’s debt problems and discussed how to solve them.
    Here’s some of what he said:
    If there’s a borrower, there is supposed to be a lender, correct? Who do we owe this money to? TO OURSELVES! Fine, I owe it to myself. I claim it is nothing anymore and we’re square. Go to Hell!” Right? It’s a debt system, this is an awful system!

    They issue money, but to whom does it belong? We are the state, so it belongs to us, don’t you agree? If the money belongs to us, then why do they lend it to us? There’s something not adding up, right? Once we used to have gold coins, they were ours. We had some gold and it was ours. Now we have a note that says 1000 Lira. Who does it belong to? On the bill it says “Bank of Italy” and “Payable to the Bearer on Demand.” If I go to the bank to demand that money, they won’t give me anything!

    The bank of Italy is a private joint-stock company…we wil never know who they are. They issue money out of thin air and lend it to us. It’s the state that is supposed to issue it. The state should keep money circulation stable, keep prices stable. Yet, our money is issued by a joint-stock company. Money shouldn’t look like that! It shouldn’t say Bank of Italy, it should say Republic of Italy! It shouldn’t be signed by the governor of the Bank of Italy, it should be signed by the President! That would bring satisfaction to us all!

    • GSOB

      LOL

  • joe oberr

    Simple question. Why does the gov’t have to borrow from a private financial institution, aka “the Fed”, in order to spend more than it takes in in taxes and thereby place this debt’s liability on future generations? Was not the gov’t able to, at least at some points in our history, simply print Treasury notes off the federal printing press and incur no consequential debt?

    • folgers22

      I think the book explaining it is called, “The Monster from Jekyll Island.” The banksters 100 years ago met in secret in South Carolina to plan a better system. and their pets in Congress made it a reality. Here we are.

      • JustanOguy

        Just to let you know… Jekyll Island is in Georgia.

  • df NJ

    Politics are pretty irrelevant at this point. But I thought this was funny:

    “I’m still waiting to get trickled on by Reaganomics. It’s been more like a number 2.

    Cartels, monopolies, low wages, VOTE REPUBLICAN!”

    • http://www.linktoit.com Lord Rainchild of LinkToIt-com

      Hi DJ, I really like your posts, and would like to stay in touch with you. I was trying to find that post where you mentioned ‘metamorphic contempt.’ I don’t know any other way to contact you except posting here. I was wondering if you can post to my disqus thread on linktoit-com – so I can dialog with you once in a while. I think tapping your mind would be helpful for the new news portal website that I am working on and also a booklet I am putting together that i intend to entitled What a Joke! – would really like to invite you there to linktoit dot com… + any others who might be reading this. Thank you!

  • folgers22

    I’m not sure who has a better deal in this day and age-the prudent man who has no debt, or the debtor who totally throws caution to the wind and goes into hock up to his ears and takes out credit cards on his cat’s name, too. When the house of cards collapses, the prudent man with the bank account full of savings will probably see his money seized to pay for the emergency, while the debtor will probably be bailed out by the government using the prudent man’s money.
    What a Country!

    • wheel

      Ain’t that the truth. Just like all the bailouts from the housing collapse with homeowners and speculators just walking away and leaving the taxpayer to pick up the pieces.

      The fact is if we could time it and know exactly when the collapse would happen I would recommend going hog wild on the spending and borrowing and give them all the finger when I declared bankruptcy.

      • Gay Veteran

        the banksters gave out loans to people they knew could not pay, we should have let the banksters go bankrupt.
        we need banks, not any particular bank

        • Nemnor

          The ‘banksters’ felt “compelled” to (IRRATIONALLY) “invest” as they do, not so much so because they are greedy or stupid, but rather, it is more so because of the Capitalist system in the USA (and the World) that has became DECADENT.

          This decadent Capitalist system is often labeled as – “corporatism”, or “socialism” or “crony capitalism” or “communism” or “fascism” or “welfare(ism)”, etc.. But regardless to the label, for the past 500 years or so, the the economic system in the World firmly remained Capitalism (in it’s ESSENTIAL form).

          The Capitalist system became decadent as it reached a stage of general over-production. With over-production, it became harder and harder for the Capitalist to sell their products/services, for even what the Capitalist consider a reasonable profit.

          Hence, the reason the Capitalists (irrationally) engage more and more in “Share Repurchase”/”Stock Buyback” (to ARTIFICIALLY raise the value of a company’s stock), and/or invest in “financial bubbles”, “derivatives” and other exotic “financial instruments” (even lend money to people that are not credit worthy), and with many of these “investments” having little or not relations to the real economy!!!

          Once one becomes aware that the main root cause of the major socioeconomic issues facing the USA and the World is – Capitalism itself – which had became DECADENT (but labeled as “corporatism”, “socialism”, “fascism”, etc.), and that there is NO “real”/”pure”/”free market” Capitalism to go back to (because Capitalism ALREADY passed it’s progressive stage), then it becomes clear that any REAL/effective solution MUST include a fundamental change away from Capitalism (as no amount of “reforms” can ever fix Capitalism – which is now at a “dead end”).

          • GSOB

            How Lovely are Your Dwellings!

            For a day in Your courts is better than a thousand outside. I would rather stand at the threshold of the house of my God Than dwell in the tents of wickedness. For the LORD God is a sun and shield; The LORD gives grace and glory; No good thing does He withhold from those who walk uprightly.
            O LORD of hosts, How blessed is the man who trusts in You!

            **************************************

            Praise to God for a Living Hope

            Praise be to the God and Father of our Lord Jesus Christ! In his great mercy he has given us new birth into a living hope through the resurrection of Jesus Christ from the dead, and into an inheritance that can never perish, spoil or fade.

            This inheritance is kept in heaven for you, who through faith are shielded by God’s power until the coming of the salvation that is ready to be revealed in the last time.

            In all this you greatly rejoice, though now for a little while you may have had to suffer grief in all kinds of trials.

            These have come so that the proven genuineness of your faith — of greater worth than gold, which perishes even though refined by fire — may result in praise, glory and honor when Jesus Christ is revealed.

            Though you have not seen him, you love him; and even though you do not see him now, you believe in him and are filled with an inexpressible and glorious joy, for you are receiving the end result of your faith, the salvation of your souls.

            **************************************

            Take up Your Cross

            “For what will a man give in exchange for his soul?

            “For whoever is ashamed of Me and My words in this adulterous and sinful generation, the Son of Man will also be ashamed of him when He comes in the glory of His Father with the holy angels.”

          • http://www.mindbodygreen.com Kim

            Comforting verses. Thanks for sharing

          • Free_man

            Anti-Mormon

          • Thomas Keith

            Capitalism? That’s a thing of the past. We now practice Debtism – capital is no longer used to finance expansion, debt is. We shall all soon learn the vast difference between the two. God help us.
            _aleph_

        • Free_man

          bilge

          • Gay Veteran

            the banksters would NEVER break the law, right?
            fixing LIBOR, pled guilty
            fixing foreign exchange, pled guilty
            perjury on mortgage foreclosure documents, pled guilty

          • Free_man

            Pretentious

          • Free_man

            You’re breaking the law

    • Cluez Jones

      Anyone holding any amount of cash in a bank account deserves what they get

      • Da_Neutral_Observer

        We will have more warning than that. The people of Cyprus who lost everything were the ones in denial until it was too late. When the Euro reaches parity with the U.S. dollar, it’s time to start the withdrawals. It only goes downhill worldwide from there.

        • David Cher

          Good Day DNO…may i learn from you, what is your theory of your analysis for the parity of the both said currencies…? Thanks

      • Priszilla

        As do people who have no savings at all.

    • gman

      whether you save or borrow, you won’t be allowed to keep it. everything will be seized, collectivized, taxed, requisitioned, or coveéd, and you’ll be just another serf.

      • davidk

        What does coveéd mean? I can’t find a definition for it.

      • g13man

        i do not think china wants its junk back !

  • huh ?

    Can’t pay off the national debt with Federal Reserve Notes anyway because each note has interest attached to it – that’s why it’s called perpetual debt ! The only way to pay it off is for them to seize all the collateral = the country and everything in it – including the chattel/people … which is what their entire game plan was from the beginning !

  • Johnny

    It’s easy to rack up debt when you’re spending money you didn’t earn.

  • Antonio Ossa

    THE ONLY SOLUTION IS TO CUT TAXES ON THE 1%!

  • Drud

    This is NOT a surprise. It just goes right past most people, because they don’t understand the nature of debt-based currency. ALL currency in this country, and virtually all of it in the world, IS debt-based…it is LOANED into existence by central banks. M3 always tracks fairly closely with national debt. No, of course the national debt cannot be “paid off.” That has never been a possibility…certainly not since 1971.

  • JustanOguy

    Don’t sweat it too much… currency is just something that is used for a method of exchange and can easily be replaced.

    I don’t really give a hoot if the financial system collapses.

    • Nemnor

      JustanOguy, “…if the debt isn’t paid back…”, then that potentially brings the entire Capitalist economic system towards total collapse.

      For those that have a fantastic and unrealistic notion of the true nature of Capitalism (“pure”/”real”, “free market” or not), please know that, in order for Capitalism to exist (for Capitalism to function “properly”), wealth must CONTINUOUSLY flow away FROM the mass of the people (“the 99%”), and INTO the hands of the FEW (“the 1%”), to ADD to the billions/trillions “the 1%” ALREADY have.

      As stated in the foregoing, this has ALWAYS been the TRUE NATURE of the Capitalist system (in ALL its forms and throughout it’s 500-year history).

      So, NOT paying debts can directly translate to the collapse of Capitalism (into total chaos). Hence, the reason Governments and Central Banks all over the world are taking Tax Payers money to “bail out” various Capitalist businesses. They are FUTILELY trying to “save” Capitalism – which is now DECADENT and at a “dead end”.

      • GSOB

        As a sun God enlightens (Ps 27:1); as a shield He protects.

  • grumpyhillbilly

    What happens when debt exceeds money? War. Probably one with nukes.

  • Randy Townsend

    Worse than the article indicates: Those of us that have saved and invested hold dollars that will lose most (if not all) of their value when inflation hits. Then, despite having done the right things financially, we will suffer like all the rest. And then, people will get mad….

    • jsmith

      … and riot. And then they will look for scapegoats: The banksters. And that’s why the bankster community is looking for quick getaways.

  • DJohn1

    I think we need to know the rules before we speak of debt.

    Rule # 1. Always be technically insolvent.
    That way if you are caught in medical expenses there is no way that anyone can collect money out of you.
    Rule #2. Never ever work for a living.
    That way there is no money to tax. Your Congress makes the rules and the appreciate it when you follow their rules. Those rules make it a crime to work. They got it by doing it themselves.
    Rule #3. Never make more than the minimum to qualify for every government “aid” program out there.
    It would technically take at least $45,000 a year to break even with what the welfare system will give you.
    Rule #4. Know the welfare system like the back of your hand.
    Know what you qualify for and apply for it.
    Rule #5. If you do work, work smart, not hard.
    Believe it or not bankers, lawyers, and very successful people follow this rule. The rule is meant to get you rich without ever working hard.
    Rule #6. Steal the money from someone that actually works for their money. Lawyers do this all the time. They steal money from the poor, the aged, and even the dead. Those high fees for making an accounting error at your local bank, same thing, theft.
    They actually pay people to take divorced people back to court if there is even a hint of making more money by working for it.
    Rule #7. When the entire system collapses blame someone else for everything that is wrong.

    • df NJ

      What about the corporate welfare?

      • DJohn1

        The corporate welfare system owns the entire system.

    • Paul Patriot

      Sounds like the way of the liberal, progressive democRATS, and entitlement crowd.

      • DJohn1

        They are the authors that caused the rules to be the way they are. Most people just follow those rules as set down by the entitlement crowd in D.C.
        But it isn’t just the Demoncrats doing this. It is also the Republican side as well.

  • df NJ

    The military is probably going to go house to house collecting guns and gold for national security. Didn’t they government seize all the gold last time?

  • Richard Broberg

    We can pay it back. It just depends on how many zeros the Fed puts on the new money.

  • Philip Arlington

    Inflation is the other way out. It hurts, but many other countries have experienced bouts of high inflation and are still standing, including my own.

    Nations generally don’t collapse unless they are invaded, and the US won’t be invaded. It is merely degenerating from being a goldilocks country be being a messed up country like most others. It won’t collapse.

    Please put an end to the absurd panic mongering on this site and focus on your analysis of structural failure of the US economy to enhance the wellbeing of the public as a whole. The latter is worthwhile, but it is discredited by the former. You need to change your approach if you want the worthwhile part of your message to be taken seriously by a wider range of people.

    • Justin

      Au contraire. America is being invaded right now! Mooslems and communist Chinese are going to dwarf the Mexicans once this evil classified TransPacific Partnership passes, which includes gun control, unlimited immigration in exchange for some debt forgiveness, and at the end, America will be a country of a billion people.

  • frank1569

    There is no profit in paying off a debt. Which is why the Big Banksters created a system which guarantees virtually every human on Earth, and every national government, remains deeply indebted at higher and higher interests forever.

    And every 7 years or so, said Banksters crash the global economy, stripping 10s of millions of people of everything they have – except their debt – thereby forcing them to accrue even more debt just to get back close to where they were, which, coincidentally, takes an average of 7 years…

    How do they continue to get away with this? Because We The People do absolutely nothing to stop them. And until we do, we deserve to get screwed over and over and over again…

    • http://www.linktoit.com Lord Rainchild of LinkToIt-com

      i fully agree with your summary.

    • Ed

      Blame someone else. Never fails.

  • dbtunr

    Sell off a few States like Alaska and Hawaii and half the debt is gone. We bought Alaska from Russia when they had financial issues. Could easily sell it to a basket of countries who would mine and drill much more vigorously then we intend to. Japan or China would gladly take Hawaii.

    Just have to think a little outside the box

  • jsmith

    Fine article Michael, thank you. But I would like you to post an article on how back in 1923 those Germans that were lucky to have invested in gold and silver fared. I mean, we read about how most Germans lost all their savings and how people died of hunger, but what about those that came out okay. Same for people that got out of the stock market in 1929 in the U.S.

  • Priszilla

    Well, part of that debt is owed to American citizens.

  • dbtunr

    of course another way out is a “pandemic” that wipes out welfare recipients and the elderly. If everyone over age 65 and on welfare was “erased”, we would have a huge surplus. Distasteful as it sounds, it is true.

  • df NJ

    Here’s a decision I now face. I currently have a safe stable job that pays just enough for me to pay my bills. Or, I just got an offer for a job with a longer commute but pays much better. I will be able to pay my bills and save some money. But the higher paying job may only last 6 to 12 months. I may get 18 to 24 months out of it. But it’s high pay comes at a price of possible instability. But I will double my take home pay. Any thoughts? I’m leaning towards higher pay because everything is unstable. This is a Shemitah year.

  • greyprepper

    There was nothing crude, vulgar, or threatening in my post and yet it’s been rejected twice! What gives?? >:(

    • df NJ

      Some words are screened out. It doesn’t mean anything. Lots of mine have been approved but it takes a while.

      Test: Z ionist

      Hey it worked.

  • greyprepper

    Meh, whatever. I’ve been a devoted fan for years but I’ll stick with Infowars from here on.

    • df NJ

      I like both. This site the people are not as angry. Alright, maybe they are!

  • hendrik1730 .

    This will end in a Greek like scenario, like for all other countries who are running out of debt control. I give it 5 years at most before the big collapse.

  • Ed

    Sorry but I don’t agree that debts cannot be repaid. 95% of money in circulation was created as debt. Therefore the money is out there in the system to repay the debt somewhere. That is a mathematical fact.

    The problem is the way debt and money is distributed in the system. I imagine a triangle (rich at the top and poor at the bottom) in which people at the bottom take out debt and money(assets) migrate up the triangle. The triangle constantly requires a new base of indebtedness to form so everyone above in the triangle can pay off their debts. It is a classic pyramid scheme. The system must grow all the time, because once it stops growing the people at the bottom of the triangle can’t pay off their debts. At this point defaults ripple up the triangle. Assets and debts get liquidated.

    In the UK a new base of indebtedness is being put in mainly in two ways: firstly, by engineering house price inflation (by increasing the population and not building enough homes) and secondly by student loans.

    The pyramid scheme will collapse when GDP fails to respond to the increase in money supply, which it surely will one day, when we reach the Limits to Growth.

  • sre

    I have heard that we owe most of that to ourselves. I don’t know how that works, but why not just cancel it? No more debt.

    • Ed

      No more debt, no more money unless you devise another system of money creation

  • http://www.linktoit.com Lord Rainchild of LinkToIt-com

    Listen, this blog is great and is honest. However, until the American people learn that their ‘mainstream media’ is absolutely controlled and has sold them down this river – well are they really going to care, or just ignore this complex megaproblem? They are going to ignore it. People massively read Matt Drudge’s headline picks, but drudge isn’t going to tell them this truth until it is way too late – otherwise this article would be a headline story. No, he doesn’t want inflict the the real bad news, the real scoop on his audience.

    The only real hope is show people how their popular media choices cannot be trusted and should not be trusted. I created a site that brings reporting to the highest level possible, with links to it all, but highlighting infowars, the economic collapse blog, and drudge. I am looking for help from some of you out there, to check out LinkToIt-com (linktoit-dot-com) and help start getting the word out. People will then have a softer transition into this harsh, but invaluable, news. I hope you agree as I certainly have put alot of thought into this. There are aspects of things even creepier than this article states, how world history is entirely masterminded globally – but society isn’t ready for that and I don’t link to that high of level of information. Please support linktoit-com – if you do more people will find out about TECB too. People need to discover this information by just coming across it, on their own – otherwise they call their informed friends doom and goomers or conspiracy theorists. www linktoit com – you will visually see what i am suggesting is perhaps the best answer at helping to waking everyone up. We need a better Drudge and the Link To It domain is. There is Disqus thread there too. I’ll post this article there in 10 minutes time.

    • df NJ

      If you want to watch a really cool video to prove your point about the media google “Conan O’Brien Fully Exposes Mainstream Media”. It’s just amazing our scripted it is!! Watch this video and think about what it means.

      • http://www.linktoit.com Lord Rainchild of LinkToIt-com

        Thank you – I watched it. I can’t post the link here as it gets put up for review. I wrote an article about it on likntoit-com

        Conan actually proved on his show that night to everyone watching
        his show that all your perceptions, no matter what cable station you
        are watching at any time, is entirely managed exactly as the book 1984
        foretold. The ‘timing’ of the reports between stations is probably
        also timed so nobody flipping the channels would see that it is the
        same exact report/wording on the other ‘news’ channels.

        Everyone’s perceptions on every issue are tightly
        managed/controlled from the top down, by some small behind the scenes
        state agency funded with tax revenue or debt, and all the news
        reporters, all of them on tv, no matter watch channel/station/city are
        only reading teleprompters to you – always when ‘reporting’ about any story. Infobabes as they are called as people sit there watching their tv’s getting programmed in a trance.

        If you like that clip, here is a just another example, but even more revealing:

        And why be concerned? Because everyone are all being, now
        obviously, ‘programmed’ to believe this way or that way about any
        trivial or major topic.

        In other words, we are inside another group’s psychological
        ‘experiment’, to manage the effect of swaying everyone thoughts in an
        crafted/engineered way, like mice or ginnie pigs would be trained to
        follow a certain path. They can make everyone in the country all
        believe anything, whether it be real or fake, true or false.

  • Hary Flashman

    This morning I woke up to online photos of refugees running from the city of Ramadi in Iraq. Their home had been overrun by the islamist jihadis and they feared for their lives. It was sad. You see, that city was liberated by U.S. troops in 2006. It was a tremendous victory paid for with valiant American lives and those of their Iraqi counterparts. Unfortunately, the necessary efforts were not made to maintain the gain. As we approach Memorial Day I want to say “thank you” to all who served and sacrificed in Iraq, and to let them know that there are many of us who esteem them very highly for what they did. I also want to be sure we recognize the cost of liberty. It costs something to obtain it, and it requires vigilance to keep it. Just for your information, here are a few casualty numbers in so-called “major” conflicts:

    Conflict/ War American dead
    American Revolutionary War 25,000
    Civil War 625,000
    World War I 116,516
    World War II 405,399
    Korean War 36,516
    Vietnam War 58,209
    Iraq and Afghanistan 7,402

    The total number of Americans dead and wounded while fighting on our behalf are 1, 343,812 killed, 1,529,230 wounded, and 38,159 unaccounted for.
    So many have given so much. Thank you.
    I encourage you to take a little time this weekend to remember what it took to give us what we enjoy, and to ask if we are willing to go to the lengths necessary to maintain the gain. We need to be engaged, informed, and courageous.
    Scripture Reading: Render therefore to all their due: taxes to whom taxes are due, customs to whom customs, fear to whom fear, honor to whom honor. (Romans 13:7 NKJV)

    • df NJ

      I read that soldiers who were wounded and airlifted to Rammstein Germany from Iraq or Afghanistan who died during transit or in Germany were not classified as “died in Iraq” or “died in Afghanistan”. If you look at all the wars and rates of deaths is similar conflicts relative to number of troops deployed the death count for the two wars should be around 50,000 American soldiers. The Pentagon is reporting much lower numbers on a much longer war. Sounds like typical military psyops to me.

      • df NJ

        “Under the new reporting system, deaths that happen en route or post

        evacuation are not counted as combat deaths. This is why the number seems

        unusually low — a little over four thousand as of 2009.”

        According to The Department of Veterans Affairs, as of May 2007, reports

        in the Gulf War Veterans Information System reveal these startling

        numbers:

        Total U.S. Military Gulf War Deaths: 73,846

        * Deaths amongst Deployed: 17,847

        * Deaths amongst Non-Deployed: 55,999

        The stastics for non-lethal injuries are likewise staggering:

        Total “Undiagnosed Illness” (UDX) claims: 14,874

        Total number of disability claims filed: 1,620,906

        * Disability Claims amongst Deployed: 407,911

        * Disability Claims amongst Non-Deployed: 1,212,995

        Percentage of combat troops that filed Disability Claims 36%

        I know you probably will think this is another conspiracy theory — I did

        when I first heard about this — so please read the original report for

        yourself. [Source: http://www1 va gov/rac-gwvi/docs/GWVIS_May2007.pdf

        “The overall conclusion reached is that the United States most likely has been responsible since WWII for the deaths of between 20 and 30 million
        people in wars and conflicts scattered over the world.”

        And you wonder why the World hates the USA.

        • Nemnor

          It is mistaken and misdirected people (like ‘Hary Flashman’?) that are keeping the USA on a path to it’s eventual collapse.

          While we are thinking of “praising” those who went to Iraq, we keep “forgetting” that the USA went into Iraq on the basis of a LIE. I.e. we knew there was NO weapons of mass destruction in Iraq and that Al Qaeda was NOT in Iraq. So WHY did we feel so “compelled” to go to Iraq, bomb the country back to the “stone age” and in the process kill hundreds of thousands of Iraqis? WHY???.

          • GSOB

            He who does not honor the Son does not honor the Father who sent Him.

            “Truly, truly, I say to you, he who hears My word, and believes Him who sent Me, has eternal life, and does not come into judgment, but has passed out of death into life.

            “Truly, truly, I say to you, an hour is coming and now is, when the dead will hear the voice of the Son of God, and those who hear will live.…

            ******************************

            Matthew 8:22
            But Jesus told him, “Follow me, and let the dead bury their own dead.”

          • Gdubya

            Because it was good for business??

          • jsmith

            Yeah, good for the elite .001% sons of benedicts that rule over us peasants. I say fuc* them!

          • Padhu_lp

            Because at that time Saddam Hussain was threatening to start the trading in oil in Euros instead of the dollar. The implications of such a move by Iraq could have led others to follow suit and dollar would have lost its fiat currency status. This could have led to unprecedented financial collapse of the US economy at that time.

          • g13man

            during Clintons presidency , there where two public TV documentaries
            1 ] the super gun -[found in IRAQ]

            2 ] the inspections of IRAQ for weapons

            [We found no evidence of chemical , but found the uranium refining stuff , all of it ! ]

            then Bush got into office and those two documentations were never shown again !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

            WMD my covered up aass lies !

          • Thomas Keith

            Why did the US invade Iraq? Because Saddam was invading and taking over their oil fields. He was pricing oil in Euros, not dollars. That was a threat to our petro-dollar system. You have to read between the lines because the politicians and media feed you propaganda. They would never admit the unsavory truth when it’s so easy to tell lies.
            _aleph_

        • Orange Jean

          I work compiling and reporting various health statistics among active duty service members. They do say that our service members have better protection now in terms of body armor, head gear, etc. that they feel contributes to fewer deaths even among those who are badly injured.

          From what I’ve seen in almost 9 years of working with that data (including inpatient, outpatient and theater data), any problem with numbers being reported is likely not so much due to guile … as that with the data systems in place don’t include a good way of capturing the information on whether or not an injury (for example) is combat related. There are some official “methods” for supposedly figuring that out, but they are limited. I know that currently there’s some work being done at present to try to improve that information.

          Also when reporting data on casualties the cause of death used is the underlying causes of death, which is currently coded with a single ICD-10 code. Earlier other codes were used, in our lifetime it was ICD-9 codes. When they changed over to ICD-10 in 1999 there were many new injury codes added, which makes comparing deaths before and after 1999 very difficult

    • tacoma

      “You see, that city was liberated by U.S. troops in 2006″

      One man’s liberation is another man’s invasion. They will fight your liberation. To be free.

      Today’s rise of ISIL is a direct result of U.S. Iraq invasion and subsequent occupational failure, under GW. And Obama is trying to walk away from it. This is America’s second Vietnam. You know, after U.S. troops were kicked out of Vietnam in 1975, that country enjoys 40 years of peace, after 40 years of colonial occupation and wars from the French and Americans. Read my liberation/invasion again.

      • autofixer

        It is as simple as this: Iraq. Progressive Bush started it and Progressive Obamao failed to finish it. Two peas in a pod.

    • jsmith

      Yes, so many have given so much for the banksters! Back in 1971 I faced my second induction and physical at the induction center in West Lost Angeles and right away I hired a lawyer that ultimately got me a 4F deferment. Looking back, it was my proudest moment in that I didn’t partake in that glorious war to keep the dominoes from falling in South East Asia. While I feel terrible about those 58,209 who died, and countless boys who lost limbs for the banksters, I can only tell you to take your thanks and shove it deep into whatever nook and cranies you have.

  • Hary Flashman

    This person knows nothing of savings- 13.5 trillion is ours – we already paid it into the social security system. It does not have to be paid back all at once it is set to be paid out in the future. 3 trillion is owned by chinese bank due to taxation of american companies not bringing home their money, 3 trillion is owed to Japan – this amount of money is owed Japan. Stop buying their stuff if you do not like their saving your money.. Let the one who does wrong continue to do wrong; let the vile person continue to be vile; let the one who does right continue to do right; and let the holy person continue to be holy.”

    • df NJ

      The Chinese are addicted to our trade imbalance like heroin addicts. I doubt they will abandon US Treasuries anytime soon if it means massive unemployment in China. When I was in China, the companies we dealt with did not care about branding and marketing. Everything was about producing products and the lowest price and maximizing employment. There is a strong communistic zeitgeist in China. Employing large numbers of people is more important than making a profit.

  • GSOB

    A man’s heart devises his way: but the LORD directs his steps.

    • greyprepper

      Good scriptural advice/encouragement, thank you. It honestly takes some major stones to be a Christian online these days, gotta have a thick skin! But as the good book says, you deny Christ and he’ll deny you… God bless you brother! Stay safe in this crazy world!

      • GSOB

        Colossians 2:9
        For in Christ all the fullness of the Deity lives in bodily form,

        • GSOB

          and in Him you have been made complete, and He is the head over all rule and authority; and in Him you were also circumcised with a circumcision made without hands, ……..

  • tacoma

    While Michael is right in that it is mathematically impossible to pay off U.S. federal debt, it is not necessary to do so. Because the U.S.has NEVER paid off its debt since founding. The game is to sustain the maximum amount of debt without causing self-destruction. Dangerous but doable.

    That the U.S. has by now issued an insane amount of debt is given, but is it the maximum that can be sustained? The answer is that depends on what tools are used to sustain it. If the tool is fiscal or economic performance, then America has passed the danger point, point of no-return. Point of no sustain. But that’s not the tool the government uses. Two tools are used.

    1) First the Federal Reserve uses the ‘world reserve currency’ tool. As long as the U.S. dollar is able to dominate world’s currencies, the Fed can just keep on issuing money as debt to no end. How does the U.S. maintain currency dominance? Trade agreements (which force trade partner to buy U.S. dollar and debt), and control of key global banking institutions (which the U.S. does, today). Which is why the Senate just gave Obama ‘fast track’ powers to proceed to negotiate the Trans-Pacific Partnership trade agreement.

    2) The Administration uses it’s world renowned money tool called The Pentagon. The U.S. military main purpose is no longer defense – it can push a few button and nuke anybody. The main purpose is to intervene in crisis, because a crisis cause a ‘rush to the U.S. dollar’ for safety. This is where U.S. foreign policy comes in. First, look for opportunities around the world and go in there to muck it up as much as possible (the CIA of course). Make sure the crisis is enlarged such that U.S. military can be used to ‘solve’ the problem. But it is also desirable to drag the crisis as long as possible, decades even. During this time, the value of the U.S. currency is enhanced, the unfortunate country is forced to use the U.S. dollar, and the military gets the funding it earned. This strategy – creating and intervening in endless crisis all over the world – is what enables the U.S. maintain an infinite amount of debt, without actually paying off any amount of it.

    No less than Henry Kissinger said:
    “It’s our money but it’s your problem.” [reflecting tool #1]
    “Being an enemy of the United States is dangerous but useful. Being a friend, however, is fatal.” [reflecting tool #2]

    Now you know why America has no friends. Any why $20 trillion, even $30 trillion dollar of debt is no sweat.

    • df NJ

      I would rather make Iran an important trading partner than bomb them into the stone age. I think some of our military actions are to help Israel with it’s “the Greater Israel Project” and the balkanization of the Arab states in a divide-and-conquer strategy to preserve the Israel’s hegemonic power in the region.

      “[The Yinon plan] is an Israeli strategic plan to ensure Israeli regional superiority. It insists and stipulates that Israel must reconfigure its geo-political environment through the balkanization of the surrounding Arab states into smaller and weaker states.”

      • jsmith

        Well of course that makes a hell of a lot of sense! We could be selling Iran foodstuffs and machinery and autos that Iran needs and wants. It will also help employ Americans, but that’s not what the tribe wants. The tribe also employs the same strategy on us Americans.

      • nick

        I support the balkanization and conquest of the hostile Arab states. :)

    • Mondobeyondo

      There was one time in U.S. history when the government did in fact pay off the debt. That was in 1835. It’s been uphill ever since.

  • df NJ

    Companies are sitting on lots of cash. Companies and people have a lot of cash offshore. Maybe the answer to to pass tax policies that making hiring people in this country more profitable. If we were able to somehow get wages to rise people all our financial numbers would improve. I don’t think inflation would be a problem because people generally save or pay off debt at the end of a hard recession. If the American worker becomes greedy about money again money will be worth more. People will work harder and try to get more jobs. I think too many times people do not think about both sides of an economic equation. It doesn’t matter what you pay in taxes. What does matter is the purchasing power of your take home pay. We need to convince the CEOs who are hoarding money that their remaining money will be worth more if they are willing to pay workers high wages. I remember 1996-2000 and it was a really great period of economic activity. I remember Jets landing at Newark airport one every 30 seconds. I was just there and a jet landed once every 5 to 10 minutes. We need greed to return back to this country. All the greed is at the top. We have not greed or inspiration to make money at the bottom.

  • selaretus

    Does not matter. We’ll just bundle up all that debt, monetize it and sell it to some clueless ‘investors’. We’ll call it……..US Treasuries!

    • df NJ

      It doesn’t matter if the people living in this country were productive, happy, and making progress in the pursuit of personal happiness. Instead, we have abject misery, rising poverty, and threat of economic collapse. I agree with you that it doesn’t matter as long as the pursuit of happiness is preserved.

      • GSOB

        2 Peter 1:3
        His divine power has given us everything we need for a godly life through our knowledge of him who called us by his own glory and goodness.

  • DJohn1

    The Senate and the House both passed a new fair trade act. But no one knows what is in it because the details are “classified”.
    So how can you have a law that is “classified” and expect anyone to obey it? You really have to know what the law says if you are going to obey this new law.
    I always pay close attention when both parties in Congress agree on anything. The patriot act comes to mind.
    Where this is relevant is your article points out that we are virtually bankrupt. So what kind of bill have they passed and what does it mean to the average American?
    Well it is a secret . . . I guess we will learn when they charge someone for not obeying it . . .
    What does this bill mean to American Workers?
    Have we just been sold down the river again?
    My post on the rules was done in fun.
    But as the rules are written by the Congress that restrict anyone from making more than poverty wages, it is no wonder we do not have the money to pay the bills as they come due. The problem is government has created a class of people dependent on welfare to survive.
    Those rules specify how much an individual or family can make and still qualify for benefits.
    Those rules guarantee a large welfare population.
    Those same rules encourage a population of defective(healthwise) people while killing off the population of people that are healthy by drafting them somewhere down the road. The drafted people obviously get shot at in various places around the world while the defective people live to breed more.
    I think it is time to do away with discriminatory laws that favor any one group of people.
    I think we need health care and food stamp laws that do not penalize the middle class at all. But that is budget I would love to see because it cannot be done. Logistically there would be too many people on it for it to exist for long.
    That is why eventually Medicare and Medicaid will bankrupt the country. Even with restrictions a good portion of the country is on it.
    In its place, I would go to a national health insurance plan for everyone in which everyone has equal rights to care. But that too would be a financial disaster.

  • bannana shoes

    Does any of this matter? The people are no longer represented,just unions,illegals,lifetime welfare leeches and corporations like GE. This once great nation is done.

  • tarheelalan

    Let’s all just stop paying for any installment debt we may have. What will been done in recourse if everyone just stops cooperating with monetary repayment?

    • Blue Liberal

      The system would just collapse.

      • df NJ

        We need to unionize the debt collectors and have the debt collectors charge an equal amount to collect the debts.

  • Blue Liberal

    This is scare mongering, the US has an $18 trillion economy. It can never default.

    • df NJ

      LOL! Hubris is always followed by nemesis.

    • pokerchip

      What part of mathematics is difficult for you?

  • Mondobeyondo

    There may be a few options. None of them are good.

    Mass selloff of federal property ——-> Foreign owned U.S. land
    Keep printing money ——-> eventual economic collapse
    Debt forgiveness. ——-> ??

    Other than that…we’re American toast., (Not French toast.)

  • GetReal4U2

    It shocks many people to learn that our debt is far larger than the total amount of money in existence.

    nuff said…

  • Wally

    Let it collapse.

  • John Austin

    Paying $1.00 per second towards 18 trillion would take almost 600,000 years to pay off

    • df NJ

      Only 50,000 years at minimum wage assuming no taxes and 100% savings rate. Of course people have to eat. Prices are really high. With the price of goods and services charged by the cartels and monopolies the people making minimum wage really are not capable of saving. So it will probably take forever even with a $12 minimum wage.

  • Orac4Prez

    Not possible!!! Democrats will soon introduce the NEW improved maths! All bills paid overnight – change you can rely on.

    Why worry. When they have the NWO currency (Amero), all your debtors will get a maximum payment of $10million (Ameros?). Each person will get $10,000 (Ameros?) in exchange for ALL their holdings. All local debts cancelled. Consider it the new reset. And don’t worry about the stashes of corporate money overseas. That will be worthless overnight (- consider it a withholding tax)

    • df NJ

      Yeah, Democrats are a real problem in this country. We have way too much equality in this country. The effing communists are keeping the CEOs down. Google the video “Inequality in America” see how the liberal scum Democrats are keeping the CEOs down. If it were not for the liberals we would have descent paying jobs and full employment.

  • ABELINCOLNABELINCOLN

    liberal women are whores

    • df NJ

      It would be really funny if the people who are not saved are the ones who pretend to be God by judging other people. That would cut down the number people entering the gates of heaven!

  • df NJ

    Some things in life are bad
    They can really make you mad
    Other things just make you swear and curse
    When you’re chewing on life’s gristle
    Don’t grumble, give a whistle
    And this’ll help things turn out for the best…
    And…

    …always look on the bright side
    of life…
    (Whistle,Whistle,Whistle.Whistle,Whistle,Whistle)

  • Battlesheep

    It’s impossible to pay off the debt only if you cling to the “old math”. Under Common Core where to 2+2= whatever you want to be then it is not impossible.

    • Orange Jean

      Very funny! I wonder if that’s why they made it up?

      I’m guessing there is also something in Common Core where you can pretend history is not what it was. So under that assumption we could also just pretend we don’t owe anyone anything, right?

  • http://www.moneybacon.com MoneyBaconGuy

    $59T could have bought a lot of bacon. It didn’t. Maybe it should have. Years of budget imbalance should have been questioned. Still can be. But it won’t.

  • df NJ

    I’m still waiting to get trickled on by Reaganomics. So far it’s only been a number 2.

    Monopolies, cartels, low wages, poverty, bank bailouts, wars, VOTE REPUBLICAN!

  • LWZRGHT

    I like the basic explanation of the money supply. I also like to consider M0, which has an official definition in other countries but to me, means actual real work or things. What is the actual “value” of corn in terms of what percentage of my day’s work should go to me eating? The price on the merc exchange is just speculative.

    Something to consider is that much of the M1 cash is constantly changing hands. Idk what the payroll numbers are, but the cash circulating daily from our paychecks back into rent, groceries, into “the economy” is constant. One thing that IS good is that we aren’t federally taxed on that money changing hands. And, in Montana for example, there is no state sales tax either, so people buying things and exchanging money isn’t taxed. If the Federal government were to take all of that money tomorrow, then they wouldn’t have to borrow money for x period of time and then it would, theoretically, circulate back into the economy through the entitlements, the civilian federal payroll, the military payroll, and through federal contractors.

    Another thing to consider is that 65% of the U.S. federal debt is owed to our own citizens and corporations. I wouldn’t go this route but seniors typically have a good amount of T Bills and notes in their retirement portfolios. When the U.S. government owes money to its own people, it gives those people a vested interest in preserving that government, which was part of Hamilton’s point when he suggested it.

    My point boils down to this: there’s no point in attempting to pay our national debt all at once, and it’s kind of an absurd academic exercise to suggest it. It’s owed to ourselves mostly, and ourselves would be the main ones to suffer were we to default on ourselves. It does make sense to increase revenue and reduce spending and get on a payment plan to get that debt back under control. Ultimately, Hamilton had a good point and we as a society have benefited for a long time from the borrowed money for building things in our country.

  • Rebel

    We all need to get up, go to work and not pay their taxes then you will see change quick like

  • William Kelly

    I like to read history sometimes, maybe I am missing something but it seems on the whole we are doing pretty well. There have been few times in mans history where a civilization has thrived as we have. In battles of the past sometimes 50-100,000 lives were lost. Kings did not have access to many of the creature comforts we enjoy today. I am grateful that I can feed myself well, live with heat in the winter, and communicate with any of my loved ones at anytime of my choosing. I do agree we are controlled to a fairly large extent, but the worst times for men have been when the struggle for power and control was up for grabs. If life is a primarily spiritual experience for some, we are pretty much allowed to pursue that as well(no having our heads chopped off for differing). I do feel for those who through no fault of their own are unable to make it in this system, but I know of no other large system where no one suffers from lack of opportunity. Please enlighten me to the great nirvanas that man has had of which I am unaware

    • df NJ

      I appreciate you half-full mindset and your values of self-reliance. But I somewhat disagree with your view that the system is beyond improvements. About every 80 years people forget why laws were made to address obscene levels of inequity and poverty. Can you imagine what could possibly happen for someone to use this rhetoric in political discouse. What I fear is a economic result that would cause politicians to talk like this. I don’t want to live in this World where this type of rhetoric wins elections:

      “An old English judge once said: ‘Necessitous men are not free men.’ Liberty requires opportunity to make a living – a living decent according to the standard of the time, a living which gives man not only enough to live by, but something to live for.

      For too many of us the political equality we once had won was meaningless in the face of economic inequality. A small group had concentrated into their own hands an almost complete control over other people’s property, other people’s money, other people’s labor – other people’s lives. For too many of us life was no longer free; liberty no longer real; men could no longer follow the pursuit of happiness.

      Against economic tyranny such as this, the American citizen could appeal only to the organized power of government.”

      Speech before the 1936 Democratic National onvention

  • Orange Jean

    We could and should at least TRY! My priorities for spending cuts?
    1. All give-aways, aka “aid”, to foreign countries
    2. All give-aways to foreign citizens, starting first with all those illegally in this country, including “Dreamers”. Repeal the Anchor Baby act (which was originally intended to allow those born in slavery in the USA to become citizens… a noble act at the time, now a huge problem).
    3. Replace the ERA with a much more limited agency that could still regulate the most dangerous toxins that can get into our air, water and soil.
    4. Get with of Federal education dept and return that function to states.
    5. Require the PONTUS and Congress to follow the same pay scale and benefits system as other GS employees. No paid vacations for the family, etc.
    6. Air Force One to be used strictly for business, with approval of Congress required except in emergencies
    7. Cut the number of senior officers in the military. Yes, we do need a military and it is in the Constitution… but it’s become top heavy…. which costs a fortune.
    8. Flat tax, as a % of what a person earns. If you are broke you don’t pay, if you have low income you have low tax, if you make a lot of money you have a higher tax, etc.
    9. Charge companies who export jobs a fee for the loss of those jobs.
    10. No more “trade agreements” that don’t include charging foreign companies big bucks for importing items that could be made in the US.

    That’s a start anyway.

    • df NJ

      Stop with the logical arguments! Insanity…uh…I mean politics rules!

      We have 700+ foreign military bases. It would be nice to close some of the foreign military bases and open some new ones along our southern and northern borders.

      I’m still floored by the fact we spend trillions of dollars on our military and our military was incapable of stopping slow lumbering jets attacking us on 9/11 for over an hour an half. Why spend a single dollar at all at that point!

    • Donald Wilson

      You can also freeze the pay of all government workers that include the POS president and all members of his staff, both houses of congress, and the Supreme Court. Also look into taxing the corporations no more write-offs these scum bags must pay their fair share of the tax burden. Freeze all government spending, all pork barrel spending eliminated. Prison system must be returned to the states and/or federal government. Corporations are getting rich imprisoning large segments of the population. Eliminate free education to inmates. If a contractor submits a bid for work to be performed hold them accountable, no more renegotiating. I could go on but you get my point. Billions each year are being wasted and this needs to stop. Bravo 20 out…

  • Orange Jean

    Depends… are restaurants closing because people aren’t eating out… or are the people who own them retiring? It’s not like there aren’t a lot of older people in that state and that would include those who own restaurants… which are a LOT of work to run.

    Two of my favorite restaurants in a city I used to live in (Cambridge MA) closed it’s doors years ago… a friend of mine and I had gotten together for decades to eat breakfast or lunch there and enjoy visiting, but both of them they closed because the owner was getting on in years and decided to retire.

  • http://Silbershark110.wordpress.com/ Silbershark110

    RIP US$, RIP € , financial tsunami is coming… Don’t Panic !!!
    Keep Calm & Buy Silver Phyzz.

  • df NJ

    “wrong misconception” is a double negative. It makes more sense if you left out “wrong”. But I agree with you the fractional reserve banking system has us enslaved.

  • Otto

    And, the necessity of paying off the debt?

    • df NJ

      Paying off the debt would give us a strong dollar. A strong dollar would give us a strong middle class. A strong middle class will give us the tax base needed to pay for all the juicy no-bid military contracts we so desperately need to protect us from all our fears.

      • Otto

        I’m just going to eat Wheaties.

  • 1politicalcrook1

    This can’t be right. We are in this much debt? If this was the case we wouldn’t have the Dow well above 18,000, 200,000 jobs being created a week,housing market increase, Oil the cheapest it has been in years and the dollar(the best investment ever) at unbelievable strength right now. Who would know we are in any debt? Maybe the fed printed us out of it. With the way everything (stats above) are right now you would have to think things are great now. They should raise rates!

    • df NJ

      If they raise rates, house prices will collapse and a large percentage of mortgages will be underwater. If this happens, the housing market would come to a screeching halt and bank balance sheets would suffer. I doubt they will raise rates anytime soon. Maybe in 10 to 15 years.

      As far as well the Dow is doing, google and watch the video “Inequality in America”. We cannot have inequality in this country be so extreme and still have a dollar that has any shred of value. What is really amazing about the video is how much different people’s common perception is about inequality in this country and what the actual reality of inequality is in this country. It’s really breathtaking. I’m surprised our currency has not collapsed already. The value of money comes from people being greedy about it. With so much wealth concentrated in so few hands it’s amazing people actual go to work everyday! I don’t understand why we do not have more rioting. Oh wait, we just had rioting in Baltimore.

      • 1politicalcrook1

        My whole comment was sarcasm. But according to Yellen because the fed wants the price of gold to stay down,they claim rates will rise within the next few months.

      • 1politicalcrook1

        The rioting in Baltimore wasn’t over the dollar or the Dow.

      • 1politicalcrook1

        Say it isn’t so! The too big to fail,never get in trouble banks would be in trouble?

  • petersirois

    Money does not exist in reality. Only credibility has any real value. This country…Hell, this world has been broke for a very long time.

  • EL ZORRO

    Want to control expending?…Stop foreign aid to all countries, stop paying the UN, stop all foreign WARS, close all foreign military bases, eliminate the NDAA, NSA, DHS, EPA,Department of Education, Energy department,Interior Department, STOP the CHEMTRAIL/HAARP POPULATION/WHEATER CONTROL PROGRAM, CLOSE AND ARREST ALL FEDERAL RESERVE BANK MEMBERS and START PRINTING OUR OWN MONEY HAS ESTABLISH IN THE CONSTITUTION.

  • race_to_the_bottom

    The Fed can instantly create all the necessary money to pay off all the T-bills in the observable Universe. What this means is that when the a t-bill matures, it is not simply rolled over for another interest bearing t-bill, but for a non-interest legal tender certificate, i.e., money. Then the holder could spend it or invest it as he wishes, but the public is off the hook. This is not inflationary either, because in the market government debt and money is interchangeable anyway.

  • ejhr

    IMO, there is a lot wrong with this article. QE is not “debt” It is balanced across the accounts in the Federal reserve. Strike out that “debt”M1
    Most of the M2 money is private debt, bank loans etc. That money comes and goes every day. It’s up to the private sector to handle. It’s also just numbers in accounts at the banks, easy to change down whenever required.
    In so far as M3 money includes T securities, these also are not debts. Investors buy them at auction and so the Fed marks up the reserve accounts held by the investor’s bank and marks down the fed’s own account . Interest is paid by the fed to the investor, money created for the purpose, and on maturity the accounts are simply reversed. No money changes hands [bar the interest] so it’s not debt. Private bonds are just bank loans again.

    What this means is that future generations will not ever be liable for current “debts”. The fed can always pay any debt directly simply by crediting investors’ bank accounts. This then passed over to the private account outside the fed.

    • df NJ

      Fed = slavery

      “An old English judge once said: ‘Necessitous men are not free men.’ Liberty requires opportunity to make a living – a living decent according to the standard of the time, a living which gives man not only enough to live by, but something to live for.

      For too many of us the political equality we once had won was meaningless in the face of economic inequality. A small group had concentrated into their own hands an almost complete control over other people’s property, other people’s money, other people’s labor – other people’s lives. For too many of us life was no longer free; liberty no longer real; men could no longer follow the pursuit of happiness.

      Against economic tyranny such as this, the American citizen could appeal only to the organized power of government. The collapse of 1929 showed up the despotism for what it was. The election of 1932 was the people’s mandate to end it. Under that mandate it is being ended.”

  • TBonePickens

    Wake up people. Our TRADE deficits and debt are way more of a threat than our national DEBT and deficits. 1/7 of ALL assets in the United States are now foreign owned, according to Congressman Alan Grayson. This is bad. The national debt is a nonissue compared to our trade problems, which inevitably lead to economic decline and chaos.

  • disqus_OmfLP56r4s

    Actually, measuring static money supply hardly tells the entire picture: The important measure is productive capacity.

    By that, I do not minimize the size of the problem. The next president (no matter who it is) will have significant financial hurdles to jump over once interest rates begin an upward climb.

    America is in for some difficult times; however, since the courts long ago abdicated responsibility for keeping debtors honest, there really isn’t much stopping the U.S. from simply printing the money and handing it to the creditors. The inflationary effect would be tremendous, but would that hurt more than facing off millions of pissed-off Social Security recipients? Consider that, in the past, the banksters always have been able to blame inflation on “dirty Iranians,” “greedy Arabs,” “sneaky Japs,” and “gnomes from Zurich.” Such a blame game is silly — except that it works! And, if there’s a war, the Government always can draft members of your family into the army to fight it and leave you with that loss too.

    So it goes!

  • Bob Loblaw

    Aside from future liabilities of social security and other payments, debt assumes the repayment of borrowed money to a creditor. Eliminate the creditor and you have no debt.

  • Bruce

    We are doing EXACTLY as GREECE has done. The real guilty party here is the POLITICIAN. NONE of these problems could of happened without the laws that allowed it. I strongly suggest that the future will show politicians being targeted like the greedy, self serving animals they are.

  • Dean

    Even if it was “mathematically possible” to pay it off in full. The question is why would you? Many corporations have existed for hundreds of years and have had debt on their books the whole time and are still operating. Same with nations. There is no important need to pay off all of ones debt.

  • joblessinusa

    Right Wing Drivel. If ALL the serfs would work hard for nothing, if the serfs would forego health care, if the serfs would die when they get too old to work, if all the serfs would bear all the costs of government and infrastructure and wars…..

    Bingo! Problem solved! Build bigger banks to hold all the profits!

  • Mike_Travis

    I understood that the total national debt including unfunded liabilities was over $120 Trillion. Any comments on why the large discrepancy between Snyder’s number and the $120T reoprted elsewhere?

  • Pierre Staerk

    How much of the total debt is ownd by the FED ? If we do not care about inflation, the FED could just throw this debt to the garbage collector..

  • http://codeffeine.com/ Juan Valencia

    The social programs are a drop in the bucket, and they are for the benefit of those who are actually working, or has been working, not for everyone in power taking from it.

    Stop paying wars and giving tax breaks to multinational corporations and churches U_U

  • Shane Warne

    Although this article is interesting, and I definitely agree that debt should be reigned in, isn’t debt suppose to be based on future cash flows, not current cash flows? I thought that was the whole point of debt? (i.e. it is the whole point of debt).

  • 2Buku4U

    Buy lead not gold

  • dennis richardson

    Out of the Leviticus 25, a Jubilee is the only workable solution. Cancel the debt. The prudent man must buy gold to secure health. I sympathize with the prudent man. He must not be punished for being prudent. The central (Rothschild) bankers must have all their assets seized, they are the arch criminals who manipulated the currency. “Woe unto him who expands what is not his”. Fractional Reserve banking by gangsters. Habakkuk 2: 6

  • AirborneSoldier

    I dont see it ever being paid for. 75% of the federal budget is for so-called “entitlements”. Hands off those, were screwed.

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