Quote:
Originally Posted by C.C
"Cash" on a balance sheet is really cash plus marketable securities. Nobody wants gobs of cash sitting around earning zero interest when they could be using it for acquisitions or stock buy-backs...
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That's the problem...
There is a sum of outstanding obligations, accounts receivable, and balances due.
And then there is that pesky small sum* of actual "dollar bills".
Not unlike musical chairs, when the music stops, all the folks won't get their "funny munny" back.
The "run" that will inevitably come, will probably be on the magnitude of 3000:1 to 4000:1, in terms of loss (or deflation).
To compound that problem, "dollar bills" have no par value, at law. So they do not "pay" debt. Merely discharge obligations between bankrupted creditors / debtors.
Read the law. It will depress you.
[BTW - usury is mathematically impossible to pay in a finite money token system. Has been denounced for over 3500 years or so.]
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Federal Reserve:
July 2010 M1 = 1718.4 billions M2 = 8610.9 billions
U.S. National Debt Clock
Public debt (15/09/2010) $ 13,443,978,767,013.07
The estimated population of the United States is 309,119,103
Percapita share of this debt is $43,491.26.
M1 / percapita = $5,557.73
M2 / percapita = $27,856.25
Now I may not be a math wizard, but I think one might have a small problem if the public debt was "due on demand".
And doesn't Title 12 USC Sec. 411 define a dollar bill as an obligation of the U.S.? And said notes are borrowed, at usury, into existence?
Amazing that interest could make the public debt be 56% larger than the total sum of paper dollar bills in circulation.
U.S. National Debt Clock : Real Time
U.S. Total Debt = 53.919 Trillion.
Now how in heaven's name can such a debt be paid?
I guess someone is going to be forced into default, and lose their pledged property to the creditor.
WHOOOO-EEEEEEE, are we going to crash HARD.
I forgot to mention that "dollar bills" are not dollars.
By law, a dollar is a gold coin (silver was demonetized in 1873). Pre-bankruptcy evaluation would place the national debt at roughly 650 billion ounces of gold.
Problem #1, at current market price (1267/ounce), that much gold would cost $823550000000000 (823 trillion dollar bills).
Problem #2, estimated world wide supply of above ground gold is 5.3 billion ounces.
Problem #3, Fort Knox depository holds 147.4 million ounces (est). Which computes to 0.47 ounce percapita, or $9.53, pursuant to the Coinage Act of 1792, et seq.
That's all there is, folks.
We're [expletive deleted]!
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