Titanic stern (Photo credit: Wikipedia)
To solve the national budget problem, we’ll have to raise taxes by 50% or shut down the federal government.
As I’ve been telling people for five years, “what can’t be paid, won’t be paid.” The national debt can’t be paid. It is mathematically impossible. Those of you who continue to hold U.S. Treasuries or virtually any other paper debt instrument are going to lose your assets.
My only objection to the following video is that it’s based on the government’s claim that the current National Debt is only $16 trillion. Credible sources estimate that debt to actually be anywhere from $50 to $500 trillion. I’m inclined to accept John Williams’ (shadowstats.com) estimate of about $80 trillion.
If, as the video below claims, even the $16 trillion National Debt can’t be paid, then an $80 trillion National Debt is even more impossible to pay and more certain to cause catastrophe. Until we reach the catastrophe, the national budget can’t possibly be balanced.
Other than the claim that debt is only $16 trillion, this video’s analysis of our national debt and national budget is short, easy to understand and brilliant.
video 00:05:37
http://www.youtube-nocookie.com/embed/EW5IdwltaAc?rel=0
David Merrill
July 22, 2012 at 9:03 AM
http://www.silverbearcafe.com/private/convincing.html
“The process works like this. Suppose $1000 in Federal Reserve notes are presented for redemption in public money. To raise $1000 in public money the Fed must surrender U.S. Bonds in that amount to the Treasury in exchange for the public money demanded (assuming that the Fed had no public money on hand). In so doing $1000 of the National Debt would be paid off by the Fed and thus canceled. Can you imagine the result if large amounts of Federal Reserve notes were redeemed on a regular, ongoing basis?”
SEM
July 22, 2012 at 9:28 AM
Quoting, “Deficits Don’t Matter!”. And perhaps that is as true as, “Unknown-Known’s”. The National budget can’t be balanced; but, it is weighed in the balance…and has been found wanting of Global/Sovereign agreement to expunge and or renegotiate the 1.5 QUADRILLION Dollar Global Derivatives account. There is nothing new here; in fact, the only thing new…is the history you don’t know.
It seems that the only solution for the layman is to hunker down, pay-off as much dept as possible, buy canned/freeze dried goods and a water filter, and prepare your family for at least 10 years economic volatility.
PeaceOut
lcv
July 22, 2012 at 10:02 AM
People in the Know (3% I’m guessing), are aware that the former republic is being chewed up, bite after bite by foreign creditors (rhymes with preditors). All is well with the masses when their neighboring communities go Red Chinese. Next step the county, you guessed the rest. Then we’ll join the dolphin chorus-”Thanks for all the fish”.
applescence
July 22, 2012 at 10:11 AM
I read an article called “Hitler and the Banksters”, wherein Germany was at the same stage as the US/Global economy is now when the Rothschilds decided to take over the world last time. Hitler (Baron Rothschild actually ended up defying the banksters and leaving their fiat currency (pissed ‘em off big time) and brought Germany back to prosperous and economically successful, just by dumping fiat currency and bankster control. Apparently, it can be done, just not with banksters in control, so, seems to me THEY GOTTA GO…..we just need an open season on banksters, no daily limit, no bag limit……bring the world back to real “money”: gold, silver, etc; something of actual value. Unfortunately, while I have the article on my computer, I neglected to save the source, so I don’t remember if it came off Alfred’s site or somewhere else, but point is, we don’t have to suffer economic disaster, if we take control back from the banksters.
SEM
July 22, 2012 at 7:39 PM
My apology for misspelling your name APPLESCENCE!
SEM
July 22, 2012 at 12:40 PM
Applesauce:
I’m guessing it came from Alfred’s site, as;
HARVARD
LAW REVIEW
VOL. XXXI FEBRUARY, 1918 NO. 4
NOTICE PLEADING
…Ohh, shee-ooot! I’ll bet the modern account relationship in equity
(dependent, as per Black’s 8th definition of “account” on the presence of a
fiduciary) is the “implied trust relationship” that I’ve been harping about for the
past fifteen years. I’ll bet that the “account in equity” is the “implied trust
relationship”.
This makes absolute sense (to me, at least) since our legal tender only
allows us to discharge rather than pay our debts. The “account” denominated in
legal tender can’t ever be paid/extinguished at law. It can only be discharged in
equity. A discharged debt lasts forever (or at least 6-7 years) and the debtor/creditor
relationship of that debt also lasts “forever”.
What puts the account in equity? Use of LEGAL TENDER. Any account
denominated in legal tender is a trust relationship. Why? Because the “debtor”
never actually pays his debt. He just “discharges” it in equity—but the debt
remains, waiting for the debtor to fulfill his “implied promise” to someday repay
the debt with lawful money at law.
Nevertheless, regardless of the source material; the reality of the matter is unambiguous.
PeaceOut
Adask
July 22, 2012 at 3:40 PM
The text sounds like something I probably wrote, but I can’t recall when.
SEM
July 22, 2012 at 7:30 PM
Posted by Adask on June 25, 2009 in Action of Account, Due Process, Fiduciary relationship, Money, Notice.
In response to Alfred.
PeaceOut
KAI
July 23, 2012 at 7:24 AM
One acronym…CAFR…there are no shortfalls barely anywhere if you really look…my local town alone has nearly $70M stashed in ONLY the CASH ACCOUNT…that’s not even counting advanced forward liability accounts!!!!
We scored a victory over the weekend it seems!
http://cafr1.com/headsroll.html
David Merrill
July 23, 2012 at 8:26 AM
All this talk about CAFR! Please show me where?
http://www.colorado.gov/dpa/dfp/sco/CAFR/cafr10/cafr10.pdf
Please tell me what page?
Jorge Have
July 23, 2012 at 10:09 AM
National Debt = Private Sector’s net financial assets. I.e. it is our net savings.
SEM
July 23, 2012 at 1:58 PM
Please consider the following, in relation to the SUBJECT:
The “catalyst” for the coming monetary death can come from any direction at any time. We could have a daisy chain of banking failures, sovereign credit failures, failed auctions, central bank dishoarding of U.S. Treasuries, an oil shock caused by a war, fraud that cannot be hidden any longer, or a natural or man made disaster to name but just a few. Or…we could wake up one day and there be “no bids” for anything…anywhere…for no apparent reason. The bottom line is that the charts are saying that the time is “ripe” for SOMETHING to happen in a big way.
We assume that the currency which is in all our hands, and with which we ourselves are, as it were, identified, is fixed, and that the price of bullion moves; whereas in truth, it is the currency of each nation that moves, and it is bullion, the larger article serving for the commerce of the world, which is the more fixed.”
PeaceOut
Yartap
July 23, 2012 at 8:19 PM
We have fallen victim to usury, to democracy, and socialism (everybody at the feeding trough).
The few possible solutions:
1. The return of protectionism (higher tariffs on imported goods) to fund government and create the return of industries to America.
[This type of funding should be the main source of revenue for our national government, just like in the past. Just like Jesus said, “Are not the children free?” meaning that the locals do not pay the tribute to the king (government), but rather the foreigners pay the tribute (tax).]
2. The return of luxury taxes to fund the government.
3. An income tax which leads the people in the right directions. It would be a “Cost of Living Flat (5%) Income Tax with Incentives,” meaning that everyone could deduct their cost (domestic cost) of living. Once everyone understood that spending their money would keep them from paying the tax, which would create a “hot potato” effect and “spin” the economy. To create full employment, this income tax would give deductions for employer’s employees which is two times their cost. This will cause employers to hire more and give more raises to help line their pockets. A deduction for saving ($2000 dollars per year or 10% of a person’s earnings placed in savings for the future, this money may be spent tax free when used). It will have a graduated income tax rate of 1% for each business retail outlet or each job one owns or has (good-by Walmart, hello spread the wealth and Walmart franchises).
[The hope is to use this income tax system for all governments, with the hope of totally removing it from the federal government level after 10 to 20 years.]
4. The return of the sin tax to be placed in trust for the harms it causes with its cost based upon the need for the funding of such sins.
5. No more national government borrowing. A balanced budget!
6. The creation of “The Bank of the united States of America” (a new branch of government) which would make interest free loans to the government(s) and public based on credit worthiness. No more usury! It would only expand the money supply by restrictive standards (population growth, product growth, etc.). It would accept saving and issue saving certificates with inflation protection to savers (when money supply is expanded). It would only loan money to the national government by two-thirds vote of all governors of the states for national emergencies, not Congress.
[This will end the Federal Reserve and private banks, which will give to the American people true National Security for our country from economic warfare that we suffer.]
7. Social Security’s and Medicare’s 14% to 15% cost would be based on ALL income not just the base amount or set limit. Now the rich are truly paying their fair share or percentage just like the poor and middle class. Now, expect the fund to increase by 85% (the rich control 85% of all income). Next, the fund will be divided equally (same $ amount for each) among the number of recipients from the total fund not to exceed 65% of the fund’s total (a truly social program). If the fund runs out of money, then $0 divided by the number of recipients = $0 for each.
8. Government employment shall become our new un-employment program at a below average wage (this also applies to the President, Congress and Judges; equal pay for ALL recipients of a government check and no more government employee retirement funds).
9. End of minimum wage.
10. End of prisons (execution or restitution only).
11. End the war on drugs; and return of All troops, only declared wars by Congress, no more War Powers.
12. After three months from its announcement, a $10,000 Bounty on the capture of Illegal Immigrants (dead or alive).
[Don’t get to close to that border, Americans may snatch you and bring you across for the reward!]
13. Abolish property taxes and sale taxes for all’s security from burdens and possible losses of homes.
14. Abolish business licensing. [Licenses only create monopolies and decrease competition.]
15. Excise taxes based and only used for/on specific needs (like roads = fuel tax).
16. School vouchers implemented.
17. If a jury of 12 peers have to be unanimous, then I want my appeal courts and supreme courts to be unanimous, too! (No more 2 to 1 votes or 5 to 4 votes!) Plus, attorneys barred from serving in any other branch except judicial branch. And non-attorneys to be able to serve as elected judges, too. Elected lower court Federal district judges, no more Presidential appointments.
18. New voting Rights, One vote per household, and NO one-vote for households that get a government check.
[Removes “Conflicts of Interest”]
19. No foreign owners of anything American or used by Americans!
20. And my final solution or answer to our problems is to declare a “national economic emergency” so as to “slowly pay off” our bonds (government’s indebtedness) without interest to the holders of our debt.
[This may prevent the advent of war with some foreign governments, but not the governments controlled by the usurers or banksters, their will be WAR with them.]
Will these solutions save us and our country? I don’t know, but they couldn’t hurt. Could they possible be implemented? I don’t think so. There are to many at the trough and voting booth.
SEM
July 24, 2012 at 1:41 AM
Yartap:
No doubt you have covered all the bases and given much thought to the matter; yet, as we speak, the primary problem with the Global Economy (USA in particular) is that there is no means of STIMULATION. Nothing (not even the multi-trillion dollars already pumped into the Global Economy has worked).
Also, there is already a 0% interest rate policy in place; in fact, there is talk of a negative interest rate policy coming into effect.
Also,The USA does not need a NEW branch of government (i.e., United States Bank of America) as, prior to the ‘Reserve Note’ the dollar was named ‘United States Note’; John F. Kennedy attempted to rename the Reserve note as such and replaced the with United States Notes; they assassinated him.
The various tax schemes will not work therefore; neither will the return of industry/manufacturing since there is no means of STIMULUS. More, the entire Eastern Region has established trade within the Eastern Bloc using currencies other than the US Dollar (Petro Dollar). Therefore, the ‘Reserve Status’ of the Dollar is fading fast and once it’s gone it’s– United Banana States of America.
So, basically, the consensus is The US is beyond the point of return; the only tool that is left is to kick the can by printing dollars to zero value, which in turn means Inflationary Depression. Once past the Inflationary Depression, it may be possible to start anew and implement some of your ideas.
PeaceOut
Yartap
July 24, 2012 at 6:13 AM
SEM: I agree.
The problem that we have is that even my offered solutions are “idealistic” in today’s matters. Even when the dollar bottoms out, we cannot return to sound principles because of the type of people that we have. Remember how FDR was herald as a savior by the people. The “powers that be” will just roll out a new shinny penny (financial system/world currency) and start the process/ponzi all over again. And the people will gladly accept it.
The question for us is, “Do we stay on board the sinking slave ship to wait for the arrival of a new slave ship, or do we jump ship and make our own way?
palani
July 24, 2012 at 7:34 AM
During a time when gold was king means were limited and so was war. With fiat you have unlimited means and unlimited war.
SEM
July 24, 2012 at 8:39 AM
Yartap:
As you may have noticed from previous articles on this site, there is information of and about Kontratiev and long wave cycles. There is also information concerning the Age of Aquarius on other sites; not to mention the predictions of the Myans all of which similarly scheduled (2014).
I’m mentioning these concepts in answering your question to the degree that the coming changes that will be naturally ushered in will make it necessary for Mankind throughout the world to adjust and adapt. Therefore, the new ship may not be a ‘slave ship’ at all.
However, there is still the matter of the mindset of the inhabitants; for which we can only hope moral courage and integrity may be the zietgist of such time.
PeaceOut
PS palani…no fiat currency in history ever last more than 100 years.
Yartap
July 24, 2012 at 10:16 AM
SEM: My hope is for a new Age, too. But, we cannot put our faith in it coming. So….
We must become “independent” of others, and not depend on others for our survival. By placing yourself in an independent nature, the chances of seeing a new Age increases; and makes adjusting and adapting easier for one. But, many will fail due to their faith in others for their protection. It is better to be prepared for the storm before it comes. My reliance on others makes me weak.
And oh, you better believe that a new slave ship is on its way. The cycles of an economy insure that the usurer and banksters will steal most of the wealth and send a new slave ship. This is the cycle they live by.
SEM
July 24, 2012 at 12:49 PM
Yartap:
I understand the gist (Spirit) of your argument. However, my understanding and learning is such that there’s no such thing as a “independent” organism, inasmuch as there is only one Sovereign.
The idea of a independent nature is worthy as I strongly believe that Proper Planning Prevents Poor Performance and the you can only be 100% responsible for one person.
I wonder though…when that ‘new ship’ arrives, will/can we be forced to board it?
PeaceOut