Simple solutions are often the ones that are the most overlooked

Sincerely
Mr. Universe
I am watching…

These are only a few of the reasons why the world will fall if the U.S. falls.

Though the United States is but a young pup in the history of our world, we came up fast, we came up strong, and we grabbed the reigns when the rest of the world let them fall.

And in the unfortunate events of world history a saying stands out like a sore thumb and rings true in every single nation on the globe including yours Lucas:

Absolute Power Corrupts Absolutly

Sicerely

Mr. Universe

I am watching…

Excuse my phrasing of this it was the only way i could think to express my point, i do not mean to offend anyone and if i have done so i sincerely appologize.

But if we few here can come up with a plan here in this article, and devise a way to get people to hand over money from their pockets to pay off our national debt then it is our duty to help our nation.

Sincerely

Mr. Universe

I am watching…

so to recap the equation goes like this:
$1,642.1 x 32,000 oz = $52,547,200 per T x 30,807.6 T = $1,618,853,118,720

Now the reason I bring up gold is that is the base of our monetary system here in the United(for the moment) States of America, that little peice of paper is supposed to represent an equivalant amount in gold, unfortunatly like was stated in the article, we have a “Fractional Reserve Banking” system so the amount of paper money we have is far beyond the limited supply of gold that is held in reserve and the amount of positive intrest (meaning the amount that the dollar is stretched via Fractional Reserve Banking) basically blows that number out of the water.

Just because we aren’t useing a trading and battering system anymore doesn’t mean that we still don’t, for lack of a better phrase, think about the chicken.

In other words we are still trading the chicken for the cow only the chicken is represented by a slip of paper that says One Chicken(one dollar).

The numbers I have given will of course fluctuate on a daily or even hourly basis but this is just my interpretation of todays numbers that I have found.

I hope that this makes sense to at least one person.

Sincerely

Mr. Universe

I am watching…

I’me a retired aerospace system engineer. I became interested in honest money and the Federal Reserve system thirty years ago. This recent recession has fired up my imagination. I believe that I’ve come up with a win win solution. Will you please look at my blog? I’ve love your comments.

https://sites.google.com/site/thegreatstatedivorce/

Sincerely,
Charles La Rue

ARE YOU ************* KIDDING ME! SCREW THROWING CONGRESS OUT OF OFFICE. JUST TAKE THEM OUTSIDE AND SHOOT THERE DUMB ASSES.

Debt can be bad and hinder growth but there are instances when lending can be good for growth.

Consider an entreprenuer that wants to build a factory that will take raw materials and add value to them transforming them into cheaper and better quality products for building stronger warmer drier homes resulting in health benefits.

The entreprenuer does not have the funds to proceed with the factory and so he borrows the money from the bank who has “created” the money through debt.

It is quite possible that the debt be paid off over five years and the value added to the economy through increasing resources, making materials cheaper, promoting healthier homes is greater than the amount that was borrowed.

The borrowing can stimiluate growth – not just by increasing the amount of money in circulation but by allowing investment of tomorrows funds today in a way that improves the value of both tomorrow and today.

Such borrowing can also go bad. Lending on trends and overstimating the worth of an asset that one is lending against whether that be a tangible asset like a house or a promise of repayment. When the debt goes bad it can put everyone in a worse position today and tomorrow.

Responsible lending promotes growth and is driven by a desire for mutual ong term benefit in which risks are carefully calculated and mitigated.

Irresponsible lending promotes recession and is driven by short term selfish gain on both the part of the lender and the part of the borrower and a higher interest rate is the only mitigating factor of any perceived risk.

What is debt and who do we owe it to?

Most of it is owed to the future. The banks do not simply take that $100 and arbitrarily lend out $1000. They lend against value whether that value be tangible assets or a realistic promise to pay based on a history of earning.

That $900 that is lent out represents value not just in existence today but also in existence over the coming years. It is borrowed from the future.

We are effectively taking money from tomorrows expected wealth and spending it today.

This can be disastrous if greedy lenders overestimate the value of tomorrows wealth. Or if self entitled borrowers spend tomorrows money because they do not want to wait and save their money.

On the flip side lending out more money than actually exists right now can be extremely positive as it can fuel growth to an extent that was not otherwise possible. If the lending is used to increase the amount of resources and significantly add value to the economy it can be a very good thing. Thus lending can be very good if it increases the value of tomorrows economy by more than what was borrowed from it.

It is right to try to scare people but you need a call to action – people should ask themselves, am I borrowing productively? Is your borrowing going to be used to directly add significant value to tomorrow’s society or does your borrowing simply allow you to buy today what you want to pay for tomorrow? You are the economy all of you. It’s easy to blame fatcats, bank owners, politicians, reserve bank or whatever but their power is only perceived power and they know it. The real power has and always will lie in the hands of the people, most of them are just too fat lazy selfish and stupid to do anything about it. Does that apply to you too? Ask yourself that next time you want to buy something on credit.