Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
"In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply."
John Kenneth Galbrath The American economy has been based on government debt since 1864 and it is locked into this system. Talk of paying off the debt without first reforming the banking system is just talk and a complete impossibility.
"In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply."
John Kenneth Galbrath The American economy has been based on government debt since 1864 and it is locked into this system. Talk of paying off the debt without first reforming the banking system is just talk and a complete impossibility.
We will find out next year I guess.
No government in history has ever repaid it's debt. The first surplus in 1971 ($3.8 billion, adjusted for inflation) was written off when Nixon completed eliminated the gold standard.
"In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply."
John Kenneth Galbrath The American economy has been based on government debt since 1864 and it is locked into this system. Talk of paying off the debt without first reforming the banking system is just talk and a complete impossibility.
We will find out next year I guess.
Debt is money. In order to have expanding money supply, you have to have debt in a fractional reserve banking system. It's how the world operates. But at some point, the system became overloaded through artificially low interest rates, then it got propped up when it started to correct through artificially low interest rates, and now, we're lowering interest rates again.
If we continue to bailout these companies and banks, we'll hit hyperinflation, pay off our debt with worthless paper (unless they ask for gold), and revalue the dollar. Simple and easy, huh? Oh, don't worry about what this will cost you. That's not our problem.
Last edited by paperhouse; 10-09-2008 at 03:05 PM..
Reason: clarification
"In numerous years following the war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply."
John Kenneth Galbrath The American economy has been based on government debt since 1864 and it is locked into this system. Talk of paying off the debt without first reforming the banking system is just talk and a complete impossibility.
We will find out next year I guess.
Things sure looked a lot rosier back then during the Clinton Administration, didn't they? Funny how much more fiscally conservative he was than any Republican president in recent history. We'd be fine now if Bush had somehow kept to Clinton's timeline.
Is it really just the subprime? What about all those who took out HELOC's or second mortgages to buy boats and cars or to finance other things they couldn't afford? I imagine they play just as big a part in this mess as anyone else.
Things sure looked a lot rosier back then during the Clinton Administration, didn't they? Funny how much more fiscally conservative he was than any Republican president in recent history. We'd be fine now if Bush had somehow kept to Clinton's timeline.
Yep. Especially since the Republican Congress rammed Welfare Reform down Clinton's throat.
That being said, Bush has indeed spent money like a pimp with a week to live.
If we continue to bailout these companies and banks, we'll hit hyperinflation, pay off our debt with worthless paper (unless they ask for gold), and revalue the dollar. Simple and easy, huh? Oh, don't worry about what this will cost you. That's not our problem.
So what might happen if the lender countries demand payment in full in gold... and there isn't any?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
