Simplified. I love analogies.
Simplified. I love analogies.
• By definition, the only legitimate way a debt-based currency gets into an economy is by lending it. This lending doesn’t take place just once. Primary lenders lend to secondary lenders who lend to tertiary lenders, etc.. I.e., the Federal Reserve System lends currency to the Federal Reserve Banks which lend that currency to private banks which lend it to their customers. The chain of lenders and borrowers can be lengthy and complex.
It’s always possible for people at the bottom of the lender-borrower “pecking order” to acquire currency without actually borrowing it. For example, they can work for it. However, for those who have no credit in a debt-based monetary system, their access to currency will be so restricted that they’ll probably live in or near poverty.
• The plight of the credit-unworthy illustrates a fundamental problem with any debt-based monetary system. By definition, you can’t lend currency to the credit-unworthy and expect to be repaid. For proof, witness the sub-prime mortgage debacle of the past decade. Some seemingly smart people lent currency to the credit-unworthy and apparently expected to be repaid. They fought economic reality and reality won. The result was a credit collapse in A.D.2008 that nearly caused a global depression—and may yet do so.
I received an email containing the following photo and question:
“The answer is that she must pay for her grandparent’s and great-grandparent’s addiction to government benefits. The children will pay for the fiscal slovenliness and dependency of the Greediest Generation. There is no free lunch. Sooner or later someone is going to pay. Debt is the children’s legacy.”
I agree in part and disagree in part.
When it comes to moving money, there are only three fundamental mechanisms: gift, debt and theft.
If Alfred voluntarily gives $1,000 to Donna without receiving Donna’s promise to repay, the transaction is a gift.
If Alfred gives $1,000 to Donna, and Donna reciprocates by providing Alfred with her promise to repay that $1,000 (perhaps with interest), that transaction is a debt.
If Donna takes $1,000 from Alfred without Alfred’s consent and without providing Alfred with Donna’s promise to repay, that’s theft.
Americans live in a “debt-based” economy. There is no gold or silver coin (real money) in circulation. As a result, our fiat currency is loaned into circulation and necessarily debt-based.
The essence of every debt is a promise to repay. The essence of every nation’s debt-based monetary system is that nation’s ability to make good on their promises to repay their debts—and determination to do so.
Here’s a short, interesting video that provides a simple but clear illustration of the relationship between the US gov-co’s budget and at least one of President Obama’s proposed budget cuts.
The absurdity is obvious.
The governments of the western world have: 1) adopted “democracy” (a word that doesn’t even appear in our federal Constitution); 2) pushed to destroy the nation-states in order to usher in a New World Order; and 3) bribed the people with “free” benefits to cooperate with “democracy” and the New World Order.
The people, of course, have delighted in the promise of “free benefits” (something for nothing) and swarmed to support, or at least tolerate, the push towards democracy (collectivism) and the New World Order (fascism).
There’ve been serious, persistent criticisms of the Federal Reserve for most of the past century. But that criticism was always muted because the Fed: 1) was too rich to attack; 2) could buy off most of its critics; and 3) routinely performed the single most astonishing and crowd-pleasing sorcery of our age: it not only “spun” money “out of thin air,” it gave some of that money to us.
Human nature precludes us from criticizing those who give us “something for nothing”—especially if that “something” is “free money”.
All deficit spending by government is a way to tax children for the “free lunch”/”benefits” promised to our alleged adults. In order to keep buying the support of the current voters, the government is destroying the future for those too young to vote and even too young to understand. These children trust American adults and American politicians to take care of them. The adults and politicians instead take care of themselves and sacrifice the children precisely because the kids are too young to understand, too young to organize, too young to vote.
Deficit spending the political equivalent of abortion. It destroys the lives of those most innocent and least able to defend themselves. It destroys the future to protect the present. It is an abomination.