The Growing Danger of Debt

06 Oct

Debt9I’ve warned people for at least five years that the national debt is too great to ever be repaid in full.  That fact is my principle reason for advocating ownership of gold.  I don’t advocate gold because it’s metal, yellow or shiny.  I advocate gold because the fiat dollar must die, and the national debt will contribute to, and probably cause, that death.  In the midst of that trauma, gold should become incredibly valuable.

Over the past five years, I’ve warned that “what can’t be paid, won’t be paid” and therefore, either by secretive inflation or by open repudiation most of the national debt (80 to 90%, in my opinion) will never be repaid in full.  And I’ve warned of the incredible danger inherent in repudiation of such an enormous national debt.

That danger is seen in the fact that one man’s debt is another man’s asset.  I.e., in return for borrowing $100,000, the borrower signs a note (paper debt-instrument) to the lender wherein he promises to repay $100,000 (plus interest).  The lender and the banking system treat that note as an asset—even though it’s really just a promise to pay.  If you ask the lender for his net worth, he’ll include the $100,000 note as part of his assets.

And therein lies the danger in repudiating a debt.  If the borrower can’t pay the debt, it’s not just the debt that disappears—the correlative note, the “paper asset,” also disappears.

Thus, if the national debt is $17 trillion, that means some unknown number of creditors are holding $17 trillion in paper bonds/notes and treating them as paper assets.  Some of those paper notes are used as assets in pension funds, other to secure loans to build more homes, shopping centers, start new businesses, etc.  So, if, say, $10 trillion of the national debt was repudiated by inflation or by open repudiation, it wouldn’t just destroy $10 trillion in debt—it would also necessarily destroy $10 trillion in paper assets.

The economy can function just fine without $10 trillion in debt, but it can’t survive the loss of $10 trillion in paper assets.

To repudiate the debt is to destroy the correlative paper asset.

That’s the enormous danger in a national debt that’s too big to ever be repaid in full.  When the day inevitably arrives that some substantial portion of that debt is repudiated, that will also cause the loss of an equivalent amount of paper assets.  If enough of the national debt is repudiated, the resulting loss of paper assets could collapse the economy.

If the economy collapses, I presume that the fiat dollar will at least lose much of its value and will probably also collapse.

Some people would deny that presumption based on the fact that during the Great Depression “cash was king”.  I.e., as prices fell, the value of the US dollar increased (deflation).  The US dollar became more valuable during the deflation of the Great Depression.

I, however, note that that the “cash” that was “king” during the Great Depression was backed by gold until A.D. 1933 when President Roosevelt removed gold from domestic circulation, and backed by silver throughout the entire Great Depression.  Thus, the “cash” that was “king” during the Great Depression was not a fiat currency (as we have today) but was always, ultimately, gold or silver.

This suggests that if we go into a “Greater Depression,” “cash will (again) be king”–but that “cash” won’t be paper, fiat dollars.  Instead, the “cash that will be king” will be gold and silver coin.  The paper, fiat dollar will be subject to hyper-inflation and will lose value (purchasing power).  The gold and silver will be subject to deflation and will gain in purchasing power.

Nevertheless, for the moment and much to my surprise, the fiat dollar is deflating and rising in value.   I doubt that that deflation can be sustained–but, as measured on the US Dollar Index (US$X), evidence of deflation appears to be rising.


•  The UK Telegraph recently discussed the consequences of massive global debt in,Mass default looms as world sinks beneath a sea of debt.” Excerpts from that article include:


Global debt is still rising strongly, crimping growth and threatening defaults around the world.

“The UK and US economies may be on the mend at last, but that’s not the pattern elsewhere. On a global level, growth is being steadily drowned under a rising tide of debt, threatening renewed financial crisis, a continued squeeze to living standards, and eventual mass default.

“This is the conclusion of the latest “Geneva Report”, . . . [which] points out that . . . . Contrary to widely held assumptions, the world has not yet begun to de-lever. [repay and reduce existing debt].  In fact global debt-to-GDP—public and private non-financial debt—is still growing, breaking new highs by the month.

“[E]ven developed market economies have struggled to make progress, with rising public debt [economic stimulus] cancelling out any headway being made in reducing household and corporate indebtedness.

“The only way the world can keep growing . . . is by piling on debt. . . . When rising asset prices are merely the flip side of rising levels of debt, it becomes highly problematic.”


“Problematic,” my butt.  The more accurate descriptive term is “catastrophic”.

The author of the Telegraph article seems unnerved by the growing recognition that “asset prices” are merely the “flip side” and equivalent of rising debt.

If so, he may be beginning to sense what I’ve warned of for five years:  1) The national debt, the world debt, debt in general, can’t be paid in full; and, 2) when our excessive debt is inevitably repudiated, an equivalent sum of paper assets will also instantly turn out to be worthless.  The economy will be collapsed by the loss of paper assets.

(And the world, incidentally, will then stampede in search of any kind of “asset” that’s not made of paper or electronic digits.  The price of gold should skyrocket.)


 “Eventually, it dawns on the creditors that the debtors cannot keep up with the payments. That’s when you get a financial crisis.”


When the world finally realizes that:  1) the debt can’t be paid; 2) the debt won’t be paid; 3) the paper-debt instruments are largely worthless; 4) the whole debt-based monetary system will collapse; then, 5) the world will panic as it searches for tangible assets like gold.


“Historically, big debt overhangs have tended to be dealt with via inflation and currency adjustment, the natural, market based way of haircutting creditors.”

“Haircutting creditors” is just a fun way to describe the kind of robbery that’s been committed for decades by our government and Federal Reserve.

Who’s being robbed?  Creditors.

Who are the creditors?  Anyone who’s saved any portion of their wealth.

That savings might be in a bank account, pension fund, So-So Security, stocks, bonds, etc..  But if that savings is denominated in fiat dollars, government intentionally robs those creditors (and thereby reduces the national debt) by means of inflation.

But here’s the problem:


“There is no sign of the inflation you might expect after such an unprecedented phase of central bank money printing.”

Dahyam!  Even after trying to “stimulate” the US and global economies by injecting trillions of dollars’ worth of fiat currency, inflation has not caught on to a degree sufficient to repudiate a significant amount of the national debt.

Without a sufficient inflation, the national debt won’t be sufficiently (but secretly) repudiated.

Implication?  The unpayable national debt will have to be openly and publicly repudiated.  That’s when the public finally gets wise, and the whole fiat-monetary/Ponzi scheme implodes.


“[I]n conditions where excessive debt cannot be worked off [paid or repudiated] through growth, restraint [in government spending] and inflation, adjustment [open repudiation of debt] will eventually be forced much more divisively through default.”

In other words, if government can’t cause enough inflation to repudiate enough of the existing national debt, that debt will inevitably be repudiated by an outright “default” when government is forced to publicly admit that it can’t pay its bills, is insolvent and openly bankrupt.

That’s when the stuff hits the fan.

With inflation, the “day of the stuff” can be postponed.  Without sufficient inflation, the “day of the stuff” approaches more rapidly.

With deflation (increasing value of the fiat dollar and thereby the size of the national debt) the “day of the stuff” approaches more rapidly.


•  Deflation, incidentally, is normally hallmark of economy depression.

For the past twelve weeks, the value of the fiat dollar—as measured on the US Dollar Index (US$X)—has been rising steadily and surprisingly.

During that same twelve weeks, the price of gold has been falling steadily and surprisingly.  In fact, the falling price of gold has been so disturbing that many former “goldbugs” are losing faith in that metal.

During the week of September 26th to October 3rd, the US$X rose 1.02 points from 85.62 to 86.64.  That means the perceived value (purchasing power) of the fiat dollar rose by 1.19%.  That’s evidence of deflation.

1.19% deflation might not sound like much. But the significance is huge.

The “official” national debt is currently about $17.83 trillion.  Thanks to deflation, the value or purchasing power of those dollars just rose by 1.19%.  That means the true size (purchasing power) of the “official” national debt increased by about $212 billion.  In one week.

Thus, the national debt has increased by $670 per person.  That means you, ladies and gentlemen, each sank $670 deeper into debt than you were a week ago.  If you have a family of four, your family’s “fair share” of the national debt just rose by $2,675.  In one week.

However, if (as per John Williams, the actual national debt is about $90 trillion, last week’s deflation increased your personal share of the national debt by about $3,400.  The average family of four just fell another $13,500 deeper into debt.  In one week.

If the actual national debt (including unfunded liabilities) is over $200 trillion (as claimed by the Congressional Budget Office) then your personal share of the national debt just grew by $7,500—and a family of four’s fair share of the national debt increase by almost $30,000.  In one week.

The point I’m trying to make is that as US$X rises, the perceived value (purchasing power) of the dollar also rises—and so does the value of the national debt.

Inflation allows us to reduce and tolerate the national debt.

Deflation can increase all debt and bankrupt all debtors.  Deflation forces debtors (including the US gov-co) to admit that they’re insolvent, that they can’t pay their debts, and that the correlative paper-debt instruments are worthless.

As I’ve already explained, the national debt is too great to ever be paid in full or even substantially.  As deflation increases the value (purchasing power) of that debt, the debt becomes increasingly unpayable.

Deflation slows the economy and reduces tax revenues.  As tax revenues fall, government is less able to pay existing debts.

Worse, knowing the gov-co can’t even repay its current debts in full, potential lenders will be less likely to lend more to gov-co.  As the gov-co is less able to borrow more, the gov-co will be less able to spend the sums that have tended to hold the economy together for the past six years. As gov-co’s tax revenues and ability to borrow are increasingly restricted, gov-co will have to cut spending.  They might cut military spending, they might cut entitlements, they might cut pensions, wages or services.  But sooner or later they will cut some of the current payments being made on the national debt.

That tells me that, if deflation is allowed to persist, the day of reckoning is drawing closer when government will be forced to admit that it can’t pay the national debt.  When that day arrives, the price of US bonds will plummet, the perceived value of the US dollar will fall—and the price of gold will jump.


•  If government can’t repudiate much of the national debt by reinstating significant inflation, government will soon have to openly repudiate at least part of the national debt.

I presume that when any significant repudiation of the national debt takes place, confidence in all paper debt instruments denominated in fiat dollars will fall dramatically.

Perhaps my presumption is valid.  Perhaps not.

But if my presumption is true to any extent, to the same extent, those of you holding your wealth in any form of paper debt instruments (not just US bonds, but also stocks, pension funds, savings accounts, etc.) that are denominated in fiat dollars are going to lose your assets.

Although the following conclusion may sound like sophistry, it still strikes me as possible and even probable that as the dollar’s perceived value on the USDX is currently increasing, so is the real size of the national debt.  Thus, it appears that the dollar’s rise on the USDX (deflation) should be hastening the day of the fiat dollar’s default and even demise.  A default in the national debt should cause the value of the fiat dollar to collapse and the price and value of gold to soar.

Much to my surprise, I find myself arguing the seemingly paradoxical conclusion that a rising value for the fiat dollar on the US$X (and the correlative fall in the price of gold) makes ownership of gold more necessary and more rational.

That’s right—as crazy as it sounds, I’m actually arguing that the current dollar deflation and correlative fall in the price of gold are reasons to buy more gold.

Not because the price of gold is, for now, going up.  It’s not.  The price of gold has, most recently, been falling for two or three months.

But because the value of the fiat dollar is rising and making a repudiation of government debt increasingly likely and imminent.  If and when the national debt is repudiated, the US dollar’s value will fall like a stone and the value/purchasing power of gold will soar.


•  If the previous argument is valid, government is caught between the “rock” of repudiating the national debt subtly by means of inflation and the “hard place” of being forced by deflation to openly admit that it can’t pay the entire national debt.

Either way, the value of the fiat dollar must fall and the price and value of gold should rise.

Conclusion?  No matter which way government turns—to more inflation, or to more deflation—the price and/or value of gold must rise significantly.

When?  Don’t know.

But deflation continues, I suspect the answer may be “soon”.


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30 responses to “The Growing Danger of Debt

  1. David Baugh

    October 6, 2014 at 12:09 PM

    Hi Al. Let me ask you a question: Has the true value of gold or silver really changed? If so, upon comparison with what? If you say it is the fiat currency, then let me ask you this: What has actually changed, the alleged value of the fiat currency, or the alleged value of the gold or silver? However, if you say that the value of gold or silver (or any other such commodity) is based upon it’s availability or rarity or usefulness, or a combination of the three, then, my friend, we can arrive at an intelligent determination of what value anything has. As you undoubtedly know, the fiat paper currency in and of itself has no actual value whatsoever, as it is nothing more than a means by which we can exchange our goods and services with each other so as to avoid a cumbersome bartering system. As I understand it, there are only two sources of wealth in the entire world. The first is the natural resources (including gold & silver) that our Creator/Savior has provided for us. The second is, our labor to refine these resources to suit our needs and desires and then exchange the fruits of our labor with each other in commerce in our free enterprise system. The bottom line is, gold and silver is no different than any other such commodity when it comes down to survival. You can’t eat it, but you can use it to buy food and other necessities of life. but only from someone who is willing to give you such food & necessities in exchange for the gold or silver because he has the capability to then swap it for what he needs. History tells us of the use of “talley sticks” as a means of exchange. Though these sticks had no intrinsic value, they enabled honest men to exchange their goods and services amongst each other. The problem Al, is not the paper currency in and of itself; the problem is the charging of interest for the use of the paper dollars by the fraudulent Federal Reserve. When we get rid of the Fed and the plundering parasites running it, we can then re-establish a means of exchange using interest free, debt free currency said to be “equal weights and measures” in the Bible. Since the value of gold or silver, remain stable due to availability, our currency was based upon these two commodities. But even if we didn’t have any gold or silver, we still have our resources and labor which are far more valuable than gold when you get right down to where the rubber meets the road. We must return to our Creator/Savior’s Laws which forbid usury (the charging of interest) amongst ourselves. In fact, it is a capital crime to practice usury, punishable by death and for good reason as our current economic situation illustrates. Thus, let us be working diligently at driving the evil moneychangers out of our midst along with their debt-money usury fraud and scam.

    • Adask

      October 6, 2014 at 12:23 PM

      I wouldn’t argue that the “true” value of gold has changed. But I would argue that the “perceived” value has changed–and changed due to manipulation rather than forces of the free market. The “perceived”/”manipulated” value of gold is currently concealing the “true” value. The big question is How long can that manipulation continue? If/when the manipulation ends, the “true” value should once again emerge, and that “true” value will be represented by a price in fiat dollars (if they still exist) that’s much higher than today. But, when, when, when might this take place? I don’t know. Common sense suggests that the manipulation can’t continue much longer. Experience suggests that the Powers That Be have some very big battalions and may not “run out of gas” anytime soon.

      For myself, I take a long view, hang onto precious metals, and wait for what I believe should be the inevitable conclusion: the lies of manipulation are defeated by the truth of the free market. But I can’t help wondering if the “Powers” are so powerful that truth can be suppressed almost indefinitely. If so, I’m going to lose my assets. But I don’t mind. I will stick with what I perceive to be the “truth”. I’m “voting” for the truth–even if that vote causes me some trouble.

      As for the villains responsible for manipulating the markets, I would argue that they are waging war against The United States of America and/or giving aid and comfort to the enemies of The United States of America. That makes them liable to trial for treason. I’m not holding my breath until we see trials for treason, but it would be an appropriate ending for all of the manipulators.

      • Henry

        October 6, 2014 at 1:37 PM

        For a good idea who these “villains responsible for manipulating the markets” are, see the list of defendants in the famous lawsuit by GATA against the gold cartel for doing just that:

        Goldman Sachs
        JPMorgan Chase
        Deutsche Bank
        International Monetary Fund
        Exchange Stabilization Fund (US government)
        Bank for International Settlements
        Alan Greenspan
        William J. McDonough
        Lawrence Summers (US government)
        Paul O’Neill (US government)

      • David Baugh

        October 6, 2014 at 2:50 PM

        Hello again Al. Here is something I’ve thought about in regard to the alleged debt: Suppose when we examine the facts, we find that many of those in debt are wholly dependent upon the government and/or pension funds in order to pay said debt. If this is the case, then the “fraudsters” who are responsible for the situation cannot afford to allow the government and/or the pension funds to fail because then the aforesaid debtors would be unable to pay the “bankster” lenders. However, the producers of society will still be able to produce goods and services notwithstanding the collapse of the fiat currency. If that happens, an alternative means of exchange will automatically develop amongst the producers and those who want and need their goods or services out of necessity no matter what the puppet political prostitutes running the government will try to do. There is also now an alternative marketing system that is expanding and growing so rapidly that it cannot be stopped and that is internet marketing, and thus, electronic exchange is made possible. Of course, we must keep the ruthless and greedy banksters out of our private dealing with each other, as well as the government. The good news is, more and more folks are learning how to do this and many are prospering immensely, thus they spend more money back into society, plus they encourage others to do the same. This movement, along with the health and nutrition freedom movement, and ever growing mistrust and disgust of government by the citizenry, will be the undoing of the evil doers who will find themselves in danger of being tared and feathered and run out of town on a rail or strung up for their heinous crimes.

      • Anthony Clifton

        October 7, 2014 at 6:28 AM

        an historical Fact is that the united states was established for Justice as declared in the
        Preamble to the Constitution…of by and for the children of Israel who are White People
        and not Talmudic “Jews” from Khazaria or Edom…or the descendents of the SEPHARVAIM
        trucked into Samaria when the Kingdom of Israel went into the Assyrian Captivity…

        “This suggests that if we go into a “Greater Depression,” “cash will (again) be king”–
        but that “cash” won’t be paper, fiat dollars. Instead, the “cash that will be king” will be gold
        and silver coin. The paper, fiat dollar will be subject to hyper-inflation and will lose value (purchasing power).
        The gold and silver will be subject to deflation and will gain in purchasing power.”

        ultimately as Jesus declared in John 8:32….it is the Truth that makes us Free
        {from Debt Bondage}…as a people.

        one might notice that the words “JEW” worshipping MOSHPIT, or multicultural
        “JEW” worshipping Moshpit do not present themselves either in the Articles
        of Confederation, The Declaration of Independence, The Magna Carta, The
        Declaration of Arbroath, or the Preamble to the Constitution…

        and when Jefferson eulogized Washington and used the word Israel he was not using
        the word Israel to describe the Khazar “ASHKENAZIM” proselytes to Talmudic Judaism from
        Khazaria, Poland or the Ukraine…

        Jesus admonished to KNOW THE TRUTH….for good reason.

        the money changers & pharisees COMPASS land and sea to make one “PROSELYTE”
        two-fold child of hell…

        and in the Jew Worshipping Multi-cultural Moshpit that is America today…”THEY” print
        the currency and own the media and operate a filthy degenerate CRACK HOUSE called
        CONGRESS…{see Tupper Saussey – Rulers of Evil}

        The Almighty is not mocked…

  2. Toland

    October 6, 2014 at 12:40 PM

    The US government and its creditors will probably agree to “restructure” the debt. This option is often used when a debtor can’t pay up according to the original terms of the loan, but outright default would be bad for everyone.

    Restructuring a national debt involves assigning priority to the creditors. High priority creditors (e.g. US citizens, pension funds) get paid first and usually according to the original terms of the loan. Low priority creditors (e.g. foreign hedge funds) get paid last and over a longer time than originally agreed.

    Using the well known methods of debt restructuring, the debt problem of the US government does become even more chronic than it already is, but the sudden economic implosion which nobody wants is avoided.

    • moon

      October 6, 2014 at 1:00 PM

      Toland, you certainly have the option to bet that pension funds, etc. will be the high priority creditors if you’d like. Considering who’s dealing the cards and house rules (which are subject to change), though, not playing in that casino makes much more sense to me.

    • Henry

      October 6, 2014 at 1:40 PM


      Iceland is a recent example of what you describe.

      Russia did it also, like 12 years ago. It was funny watching the IMF chief get visibly upset on CNBC because, after decades of salivating preparation, the Money Power was ready sink its teeth into Russia, but the Russians were smart and got away. The rest is history.

      • Toland

        October 6, 2014 at 1:59 PM

        All that fuming and stomping by the IMF kingpin was only a preview of what the Money Power has been doing since Russia and the BRICS launched their own version of the IMF, to provide an alternative to the “necessary austerity measures” nation-wrecking crew.

      • moon

        October 6, 2014 at 2:56 PM

        LMYIAO… you young’uns do have an up hill pull.

      • Henry

        October 6, 2014 at 3:31 PM

        Toland, yeah.

        Check out Argentina. It looks to be next in line to “promote the general welfare” (quoting the US Constitution) of its own people before satisfying the worldly lusts of the Money Power internationale. Argentina’s currency will of course be attacked in retaliation, as usual.

        I agree that the BRICS Development Bank – which follows a policy that is pro, rather than con, national infrastructure – spells trouble for the Money Power nation-cannibals. Watch out though, the bad guys have started wars over less.

    • Roger

      October 7, 2014 at 2:11 PM

      “In economics, the debt-to-GDP ratio is the ratio between a country’s government debt and its gross domestic product (GDP). A low debt-to-GDP ratio indicates an economy that produces and sells goods and services sufficient to pay back debts without incurring further debt. Geopolitical and economic considerations – including interest rates, war, recessions, and other variables – influence the borrowing practices of a nation and the choice to incur further debt.” – Wikipedia

      Highest Government Debt to GDP

      Japan … 227
      Greece … 175
      Italy … 133
      Portugal … 129
      Ireland … 124
      Singapore … 106
      United States … 102
      Belgium … 102
      Spain … 94
      Euro Area … 93

      (, 2014)

      • Adask

        October 7, 2014 at 2:39 PM

        That information is probably true–provided that the total US National Debt is the same as is “officially” claimed by the US government: $17.83 trillion.

        But if the actual National Debt is about $90 trillion (as claimed by John Williams at the US Debt/GDP percentage is about 500%.

        If the actual National Debt (including unfunded liabilities) is $202 trillion (as claimed by the Congressional Budget Office and also economist Lawrence Kotlikof) the US Debt/GDP percentage is about 1,100%.

      • moon

        October 7, 2014 at 2:52 PM

        LMYIAO…do you really think someone might lie about the numbers?

      • Roger

        October 7, 2014 at 5:35 PM

        The above debt-to-GDP table uses figures from the IMF. They have their own auditing procedures for the data they publish, rather than simply relying on self-reporting by governments. Yet, maybe the US is somehow getting away with lying about its national debt. Maybe everyone else on the list is lying too. It’s hard to say.

        For what it’s worth, the IMF’s data is used by economists and financial types around the world as the standard reference for these purposes, which of course does not by itself prove the IMF is right and John Williams of is wrong.

        We’ll have a better idea what sort of credibility John Williams has versus the IMF by the end of the year, when his predictions for the US dollar in 2014 will be proven true or false.

      • moon

        October 7, 2014 at 6:43 PM

        Hmmmm…just wondering how that test would work. If John Williams’ predictions for the USD in 2014 do not come true, are you saying that would mean IMF and other numbers are accurate?

      • Roger

        October 8, 2014 at 2:27 PM

        The reason to think the IMF data is likely correct is that it is used by economists and financial types around the world as the standard reference data. This means there are many professionals in their fields who are scrutinizing this data to spot errors, inconsistencies and lies – yet such problems are very rarely found (not because the IMF is especially honest, but because they’re smart enough to not publish bad data where it’s easy to catch them out).

        The professionals looking over this IMF data are from countries which are frequently not allies of each other (e.g. not allies of the United States), meaning the IMF data is open to a sort of peer review process by independent parties with genuinely critical motives.

      • moon

        October 8, 2014 at 6:28 PM

        Oh, pardon me, didn’t realize these numbers came from the work of “professionals”. My mind was envisioning a bunch of jack leg bean counters.

        Do you think it was a walk in the park for John Williams and others to reach their differing and independent numbers?

        You sound like a tired pitchman for a way off the midway sideshow. Do you actually believe the numbers you posted?

      • Roger

        October 8, 2014 at 7:26 PM

        “You sound like a tired pitchman for a way off the midway sideshow.”

        Apparently we have differing opinions on this topic. How this makes me a sideshow pitchman in your mind is unclear (and unimportant). I thought we could have a rational discussion or even a lively debate, but you prefer personal characterizations and name calling. Take that as evidence you’re not as clever as you think you are. And since I’m neither a psychiatrist nor a babysitter, I’ll say bye bye.

      • moon

        October 8, 2014 at 8:31 PM

        It’s funny that you’d take the pitchman statement as a personal characterization. You keep trying to pitch these “official” numbers as if they’re accurate, but you’re not making a valid case for them. All you say is that hot dogs all over the world take them as gospel, while economies all over the world are on the verge of collapsing.

        It’s a bit unproductive for you, Toland, and Henry to keep shouting “official” propaganda as though it’s true without backing it up. When someone questions you about it, you’re the ones who hide behind name calling and negative personal characterizations.

        Try this one question:

        Do you actually believe the numbers you posted?

      • Henry

        October 9, 2014 at 12:29 AM


        Thanks for posting those debt-to-gdp numbers I requested to show where the US ranks. I have seen similar tables from other sources like the ECB and Russia. They vary somewhat but all put the US in the top 20. I’ll get around to finding one that includes the smaller countries and post it where you will see it.

      • moon

        October 9, 2014 at 8:40 AM

        Henry, do you actually believe the numbers Roger posted?


  3. cynthia

    October 6, 2014 at 1:00 PM

    great series keep in mind that ‘gold’ ‘value’ can also be manipulated if ‘centrally controlled’ i.e. federal or national. my preference is man to man negotiation bartering or dickering and natural right to necessities to life with fair consideration intermixed with time dollar or time bank – local vs national “government”

  4. bandit

    October 6, 2014 at 2:05 PM

    This is something that the world should understand as it has been explained before but not readily understood.Silver is the value of the moon or emotions and gold the value of the sun or self worth. The plutocracy create an illusion giving metal an intrinsic value based upon universal understandings which make people believe it has intrinsic worth upon a mundane level. Many have bought into this illusion and here is the crux. People are paid in silver to live a life that goes against what they feel, while those in power reap the benefits of accumulating the tears of the sun of these peoples that have become slaves to this system. If people do not emotionally connect with themselves they are acting out self betrayal, killing the sovereign Christ impulse within. Debt or the creation of it is nothing more than the projection of how stupid people have truly become and in reality selling their children without being conscious of it. It is the fool that uses the same consciousness to try fix a problem that has seemingly created the problem in the first place and in this instance, there is no way of changing the way things are if you cannot grip how it got to this in the first place. History will show that war and money are hand in glove and war is about ruling over people for the sake of living a comfortable life in luxury.

  5. palani

    October 6, 2014 at 2:44 PM

    Emancipation is commonly thought of as freeing a slave or setting an errant wife to pay her own bills or even as setting a son or daughter on the path to life by commencing to pay their own bills. When a government steps aside and a new form of government steps in the old government is naturally going to repudiate the debts of the new government. That is what happened with the 14th amendment and the new form of government it established. By the same token the new government is not going to offer to pay the debts of the old one. Where this impacts ‘the national debt’ of the old government is: check out the number 346,681,016 on google. This is Lincoln’s debt. It was gradually brought down to this level until 1878 when congress passed an act making it constant. I have a $5 note from 1862. Should I volunteer to return it to treasury the new national debt will not be 346,681,011 because my action has been anticipated by congress and they have authorized Treasury to print another U.S. note in the sum of five dollars to match the one I have considered donating.

    When this government fails (my belief is that it already has) then expect the actions of the new government to follow precisely the path followed by the new government in 1868. Expect an emancipation amendment similar to the 14th amendment, perhaps containing equal rights for women, perhaps declaring all animals are equal but pigs are more equal.

  6. skybluehigh

    October 6, 2014 at 4:41 PM

    Maybe the manipulators have already read this post and, therefore, have already moved into metals.

  7. wholy1

    October 6, 2014 at 5:31 PM

    “Danger” for/to whom?
    What is the nutritional value of gold?
    What is the “security overhead” of gold held personally?
    How would you prioritize “gold” in the elemental “G’s” for not just surviving but “thriving” – God,
    Grace, [arable, rural, unencumbered] Ground, Group, Guns, Gold, Grain, Garden?
    Is “debt” just another of the four letter words of “[in]consequence”: fear, hate, just (in the limiting sense), “free”, etc – to the repented Men and womb-Men accessing the “Blessing from the Beginning” revealed?

    • bandit

      October 7, 2014 at 1:18 AM

      When people have poor defined boundaries they allow a “rape” to happen within their own Psyche without being aware and are conditioned by societies mechanisms to accept it without the due process for the psyche to rectify the problem. Anger is a response to this “rape” and when society holds those that are enraged in check with a retaliation of violent mechanisms a battle ensues where the side with the biggest weapons win. This is the bully gaining control and being allowed to do atrocities to others because the others have been imprinted by accepting the illusion., To stop this from progressing the individual must extract from their own being the allowing of the rape, ie the Judas within themselves and raise their consciousness (the Christ principle), which is the metaphysical Gold. The danger is the emotion and logic held within the mind and the release of heat being held in check by violent opposition. Judas gets paid with silver while the state reaps the gold of the Christ impulse. The true sovereign. To be able to manipulate this sovereign, is to delude people of the reality that the universe is not a creation but something that just is without beginning or end. We all know the sun has a lifespan so in truth, time is used for measure. And it is time that the bullies are playing for while their “house” is being shaken by the gods of the natural world, the Zodiac

  8. moon

    October 7, 2014 at 9:51 AM

    Concerning this comment from Al:

    For myself, I take a long view, hang onto precious metals, and wait for what I believe should be the inevitable conclusion: the lies of manipulation are defeated by the truth of the free market. But I can’t help wondering if the “Powers” are so powerful that truth can be suppressed almost indefinitely. If so, I’m going to lose my assets. But I don’t mind. I will stick with what I perceive to be the “truth”. I’m “voting” for the truth–even if that vote causes me some trouble.

    Al, the USDX is another number that appears to have been manipulated just as any other index number can be manipulated. Keep in mind that these are numbers that reflect the “value” of paper. Your stash, my stash, and the many stashes of physical metal are actually in a different market…the real market. Something like common law vs. administrative law.

    There’s a whole bunch of us who won’t let go of our metal at current paper prices. An offer to us would have to be much higher in terms of USD for us to part with our metal. Some of us aren’t even expecting to ever exchange our metal for USD because it would be a move back into a depreciating asset. So, whatever metal is held by us is not even in the paper metals markets that are quoted daily.

    Whether its inflation or deflation that eventually topples paper markets, precious metals have historically covered a multitude of sins.


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