The U.S. is in perpetual debt... Spiralling downward
Every year we here about the national debt. Every year we hear about what politicians want to do about the national debt.
From; cut federal spending, to raise the national debt ceilling.
But how much the people actually know about the national debt, is still to little.
Lets begin by stating that; According to the Federal Reserve of the united stated, the amount of FAITH that the citizens have, that the dollar can buy their basic commodities, is what puts worth to the u.s. dollar.
You read that right. Faith is what puts value to your dollar.
It is more complex than that but it is good to know.
Now, WHY is the u.s. in such debt? Well it began with the rise of thd federal reserve.
In the beginning. There was no money in circulation that was legal under the federal reserve act.
So the u.s. government had to put money,into cidculation they drew up a fancy "official peice of paper called a BANK NOTE, which requests funds from the federal reserve.
The Federal reserve therefore approves the loan amount, and prints the requested amount. The transaction is finished when the u.s. gov. Recieves the money and signs for 'promise of payment' or the LOAN contract, whoch guarantess repayment, plus interest.
Lets break it down:
U.S. government asks for $1 Billion dollars from federal reserve.
Federal reserve approves request and prints $1 billion federal reserve notes 'U.S. currency'
Federal reserve provides U.S. gov. With new bills upon an agreement of full payment over time plus interest.
Lets make an example.
$1,ooo,ooo,ooo @ 10% = $100,000,000
total repayment promised= $1,100,000,000
But when you add the APR to the equation it increases yearly as well for example
$1,100,000,000 @ .09% APR= $990,000
So add appr. $1m a year you that debt.
In,conclusion of this example:
U.S. gov. Now has $1,000,000,000 dollars in circulation
But..
Thw U.S. government now owes $1,100,000,000+ .09% APR
How then, will the u.s. government be able to pay the debt back to the federal reserve AND ensure there is money circulating through the public to create productivity?
If you said take out another loan, your right. And this happened again and again and again... over and over it happened and the only thing the government could do is continue to raise the debt ceilling, higher and higher.
Our system is called a 'Fractional Reserve banking system. Which means a fraction of anything that is deposited, is again deposited into a 'loan account' at both the federal,reserve, AND yoyr bank of choice.
For the u.s. government this is just the fedrral reserve but for everyone else this is fed and personal,bank.
The best part is... you have constant access to ALL of your money, and withdrawing the money, does not affect the loan account.
Meaning banks are creating money out of nothing
The complexity of our system today is so bizzar it is difficult for even the most seasoned of economists to grasp the vastness of the system
From the u.s. dollar,petrodollar, online currency, to bitcoin and other new virtual currencies, American, and other world currencies are growing to such a point that at any point the wrong person,with the wrong intentions can put the entire world into chaos.
It is good to inform yourself on the workings of the systems that dictate your day to day life.
It is good to get everyone thinking about a better solution, that does not include a financial strangle hold on the federal government.
Because,of our current system, the banking system has created a sub-system called 'QUANTATIVE EASEMENT' which is the act of selling American assets to the federal reserve to reduce the amount of debt the government has to the federal reserve.
We must change, or see EVERYTHING WE PUBLICLY OWN sold to a corrupt system.