Several Inconvenient Truths About The Debt Ceiling And "Deficit Reduction"

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Sun, 07/10/2011 - 12:25 | 1441410 Grimbaldus The ...
Grimbaldus The Norman's picture

You gotta spend money to... Erm... Spend money. Yeah, that's it.

Sun, 07/10/2011 - 12:56 | 1441468 Fish Gone Bad
Fish Gone Bad's picture

This one is actually quite frightening:

Not one penny of US debt has been repaid for 51 years: the last time US government funded debt actually decresed on a year-over-year basis was 1960.

I am sure there is a reason for this, perhaps not a very good reason, but a reason none the less. 

 

Sun, 07/10/2011 - 13:02 | 1441475 mt paul
mt paul's picture

your last 3 words ...

 

"none the less"

 

pointed to say the least

Sun, 07/10/2011 - 13:34 | 1441514 JW n FL
JW n FL's picture

http://www.youtube.com/watch?v=VtVbUmcQSuk

 


Brother, Can You Spare A Trillion?: Government Gone Wild!

 

Interest payments on the U.S. Debt.

 

 

Sun, 07/10/2011 - 13:59 | 1441553 TheTmfreak
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It can be pretty much said that if one had to look at one chart, or one video to really get an understanding of how fucked up things, are or will become, THAT is the video. Very simple, very straight forward. No need to look at anything else.

Sun, 07/10/2011 - 16:24 | 1441797 Mr Lennon Hendrix
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Possibly the worst trick played by a politician recently has been Billy Clinton's supposed balancing of his budget.  The trick has duped lame ass Democrats to believe he balanced his budget, and the lame asses like to bring it up when defending their Demo Dictators. 

Not only was it only one year out of eight that he did so, and that the other seven were hugely in the red, but he had to shut the government down to finish even.

Sun, 07/10/2011 - 17:23 | 1441933 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

I am sure there is a reason for this, perhaps not a very good reason, but a reason none the less.

This has been explained by Paul Grignon, Chris Martenson, Peter Joseph, Damon Vrable, and probably many more... those are the first four names that came to my head. If anyone still doesn't understand how credit money ("debt money") works, then probably the most important thing you can do is go figure it out.

Everything else will make sense, thereafter.

Sun, 07/10/2011 - 18:24 | 1442053 Juan Wild
Juan Wild's picture

This video helped me to understand how "debt money" works. The animation is awful but the info is outstanding. Better make some coffee and watch it during a quiet time of the day.

 

http://video.google.ca/googleplayer.swf?docid=5352106773770802849&hl=en&...

 

"If the people understood the rank injustice of our money and banking system, there would be a revolution before morning" -- President Andrew Jackson

 

 

It's hard to understand. That's why all people of all nations are slaves. Slaves to the Debt Machine.

 

Sun, 07/10/2011 - 20:49 | 1442249 pods
pods's picture

I actually burn this (Money as debt) for those who start to ask me questions.  Those that sense something just ain't right.

I tell them to watch it over and over again until they feel like they want to hurl.  Only then they get how well designed this is.  To extract labor to pay for interest on nothing.  

pods

Sun, 07/10/2011 - 21:43 | 1442389 Mad Marv
Mad Marv's picture

Thanks, good stuff.

Sun, 07/10/2011 - 21:44 | 1442397 Camtender
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I have always said that if currency theory is not understood first, then any economic theory is useless (money is the basis of all financial transactions).  I agree that this video, if watched diligently - or enough times- would explain why the debt based system that has to rely on continued debt growth would fail.

Has any one been successful in showing others this video and getting them to understand why the current monetary system will fail? 

Sun, 07/10/2011 - 21:51 | 1442417 MsCreant
MsCreant's picture

Yes, I am a professor and I have assigned it to my classes for at least the past year and a half. They are stunned and it is usually good for an entire 1:30 class period of discussion. The students are more vital and alive for much of this stuff than they are for quite a bit of the regular course content. I have ways of sneaking it in that look pretty legit. I teach in the social sciences.

Sun, 07/10/2011 - 22:00 | 1442427 Rick64
Rick64's picture

 Happy to hear that at least one professor is informing.

Sun, 07/10/2011 - 22:07 | 1442445 Camtender
Camtender's picture

I agree with that

Sun, 07/10/2011 - 22:34 | 1442481 WaterWings
WaterWings's picture

Glad to see you are fighting the good fight, as always.

Mon, 07/11/2011 - 00:34 | 1442653 Mr Lennon Hendrix
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I can just imagine the class you talk about Fight Club.

"Yes, Fight Club is real.  We...I mean they...discuss all sorts of interesting topics, from debt-money, to geo-politics.  Today we..I mean they...discussed the sillyness of the debt ceiling debate, for if it is raised, the dollar continues losing it's supposed worth to inflation by the M2 metric, and if it isn't then investment will run from the dollar like a steer from a cowboy.  Are there any questions?"

Blank stares and blinks fill the room.

"Very well, and next time please bring your copy of The House of Rotheschilde:  The World's Banker.  We will be discussing how it is that everyone can let one family run the banking industry.  Thank you; class dismissed."

Mon, 07/11/2011 - 00:53 | 1442694 Eternal Student
Eternal Student's picture

I'm glad to hear it; you've made my day. Thanks.

Sun, 07/10/2011 - 23:20 | 1442560 Republi-Ken
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But the more important fact is that a

REPUBLICAN PRESIDENT NEVER DID!

 

Hurray for those 2000 Bush Tax Cuts!

Took a surplus and made more debt shit.

Mon, 07/11/2011 - 00:32 | 1442660 sun tzu
sun tzu's picture

Wow you really are a fucking imbecile

Mon, 07/11/2011 - 00:31 | 1442661 sun tzu
sun tzu's picture

 

If not the $140 BILLION Bush tax cuts, there would be no $1.7 TRILLION deficit right now. Yaahaw you stupid cunt.

 

How about this:

 

A DEMOCRAT CONGRESS NEVER DID!

 

Sun, 07/10/2011 - 23:25 | 1442564 Republi-Ken
Republi-Ken's picture

NAME 1 REPUBLICAN President in 100 years who balanced a budget...

Still waiting.

Still waiting.

Still waiting.

Still waiting.

...Say Trickle-Down Supply-Side Laffer-Curve Bull-Shitters really fast

Mon, 07/11/2011 - 00:31 | 1442663 sun tzu
sun tzu's picture

Name one Republican President who ever had $1 trillion annual deficits


Still waiting.

Still waiting.

Still waiting.

Still waiting.

Mon, 07/11/2011 - 00:44 | 1442677 Mr Lennon Hendrix
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Cut the Hegelian bullshit.  Clinton shut down the government to do so.  I am not giving him a pass.  Do not participate in their lies.  You are trying to perpetuate the feudal system, you slave, you.

Sun, 07/10/2011 - 15:44 | 1441746 TaxSlave
TaxSlave's picture

It's not my debt.  And I'm not paying it.

They don't own me or the output of my work.

The debt will not be paid back, because it is impossible to be paid back.  I will not toil away only to have my labor stolen by money-printers.  So when the default comes, I won't be under the lash to compensate for it.  Let them come after me with pistol and whip, they will never collect enough to pay the tax collector. 

Sun, 07/10/2011 - 15:58 | 1441774 traderjoe
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+1

Sun, 07/10/2011 - 16:09 | 1441789 TheTmfreak
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Well said.

No questions asked I've decided to go galt here in a few years (if its still possible). I'm in a period of transitioning to make that possible with my girlfriend.  There is no way I will be able to live my life knowing that somebody has laid claim to my work and body. No thanks. I decide that one. Stop buying into their system, and take what was stolen from you in the process. Real simple.

Without a consumer middle class willing to put itself further into debt, the thieves at the top don't stand a chance.

Sun, 07/10/2011 - 21:15 | 1442325 NuckingFuts
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DO IT!  I sold the 5bdrm 3 bath, 5 years ago (at a profit no less, remember those glorious days?  /part sarc/). Now on 100+ acres growing vegetables.  Working my ass off.....but a slave to no one. 

Sun, 07/10/2011 - 21:21 | 1442336 NuckingFuts
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I agree with PODS comment below..........but although difficult and not sustainable for the majority of the population, it can be done.  Debt free, produce very tangible goods (food) and am willing to barter for damn near anything......and do.

Sun, 07/10/2011 - 20:56 | 1442266 pods
pods's picture

That is a good attitude to have.  But it is not correct.
They DO own you.  Through the 14th amendment trust.  

If you use FRNs, or any other benefit of the trust, you are a party to the debts that the trust racks up.

And if the exchange rate for your labor is quoted in USD, they own you again, as THEY control the value of what you exchange your labor for.

As for the system, the system does not want the debt to be paid back.  Only ever increasing amounts of debt will allow the system to function.

And if they actually pay off any debt, it would drop the money supply so much that it would be crashed anyways.

pods

 

Sun, 07/10/2011 - 15:57 | 1441772 traderjoe
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Once again - they miss THE real issue - why does a sovereign country borrow it's own money from private corporations at interest?

The debt is odious. We must repudiate. Paying interest is the scam of the century...

Sun, 07/10/2011 - 17:36 | 1441962 Rick64
Rick64's picture

Yes, and this subject will never be touched on by congress, media, monetary wizards or economists.

Sun, 07/10/2011 - 18:38 | 1442096 JW n FL
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Not why.. But How? How in the FUCK! can people just Fucking Ignore the FACT! that whatever the Federal Reserve Prints out of thin Air.. "We the People" pay 6% interest on..

 

The FED Prints money out of thin air.. to loan to the Goobermint Lobby Whores.. and "We the People" end up paying 6% on what ever was printed out of thin air.

 

How can "We the Sheepeople" be so fucking stupid?

Sun, 07/10/2011 - 19:05 | 1442135 newworldorder
newworldorder's picture

We are not stupid but are uninformed. As to the reasons why we allow this to happen - We do so because we have not been asked.

Every time the Congress or the Executive Branch want to spend money, they simply instruct the treasury to sell bonds to the FED. The FED then gives the country money, printed out thin air.

The debt money thus created, become the repayment responsibility of we the sheeple. This is how "representative government" has absolved itself of responsibility to those it governs by not asking for additional taxes.

Most of  "We the sheeple" are none the wiser for the experience and we keep electing the same officials who enslave us. The only difference is that our officials, (democrat or republican,) are better than the other guys officials. Divide and conquer at its best practice.

Sun, 07/10/2011 - 21:01 | 1442284 pods
pods's picture

JW, be ready for the standard reply from FED supporters who say that any profit the FED makes is promptly returned to the treasury.

That is mostly correct.  The FED would pay 10x that to keep their owners able to print money (loans) out of thin air.  

pods 

 

Sun, 07/10/2011 - 23:03 | 1442530 CompassionateFascist
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Here's the why, in US's case: Rothschild, Warburg and Co. bought themselves a Prez named Wilson. Since then, pols sign on because it's an EZ way to finance their warfare/welfare state, and rake off big for themselves along the way. LBJ: penniless schoolteacher when he first went to Congress. By 1960, multimillionaire. Pelosi: $40 million in '08. Now, after 2+ years of rake-offs from bailouts etc.: $60 million.   

Sun, 07/10/2011 - 16:16 | 1441795 macholatte
macholatte's picture

Thanks JW

+10

Sun, 07/10/2011 - 18:41 | 1442102 JW n FL
JW n FL's picture

Aztlan! BITCHEZ!!

 

White people arent fucking anymore the Brown Man will rule America in 5 years time!! Keep making them babies!

 

http://www.youtube.com/watch?v=ajkAP_M4ZAM

Sun, 07/10/2011 - 23:05 | 1442532 CompassionateFascist
CompassionateFascist's picture

Mestizos will never rule anything. They're just cannon fodder for the Zionist-Globalists who mean to Rule All.

Sun, 07/10/2011 - 23:53 | 1442621 Tejano
Tejano's picture

Will do!

Sun, 07/10/2011 - 13:24 | 1441503 cosmictrainwreck
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Many years ago (early 80's) I went to meeting held by my US Rep. A hot topic back then was the budget & interest on the debt (imagine that). I asked the dude "Everybody talks about interest..... are there any plans to actually pay the principle?" To his credit - after a pause, he looked me right in the eye and said "no".

Sun, 07/10/2011 - 14:31 | 1441602 HungrySeagull
HungrySeagull's picture

BINGO.

 

And the sins of the fathers continue down the tree to the children. They don't pay principal, Interest or anything at all.

Sun, 07/10/2011 - 14:53 | 1441644 Sudden Debt
Sudden Debt's picture

I had a semiliar meeting in 2000.

I didn't get the no answer.

It was: The principal is being inflated away!

At least they where honest :)

 

At this rate, the debts will be inflated to the value of a donut in 1 decade from now.

 

 

Sun, 07/10/2011 - 15:38 | 1441737 MrSteve
MrSteve's picture

see the last cent repaid by Uncle Sam at

http://www.usmint.gov/downloads/pressroom/misc/PennyUncRev.jpg

 

1959 was the year the cent lost the wheatie back and the Lincoln Memorial appeared on the reverse. Honest Abe would not be pleased to see what has happened to the value of his one red cent.

Sun, 07/10/2011 - 17:52 | 1441995 bernanke al-sahaf
bernanke al-sahaf's picture

So they'll inflate the debt away with more debt? Ah that makes sense.

Sun, 07/10/2011 - 18:58 | 1442118 JW n FL
JW n FL's picture

Shut Up!

 

Now go make that 6% Interest Payment of Paper Money Printed Out of Thin Air!

 

Sucker!!

Mon, 07/11/2011 - 10:47 | 1443687 fallout11
fallout11's picture

Of course. See also "The 11th Round", "Money as Debt", "The Mandrake Mechanism", and a host of other short, easily understood but profound explanations of this basic concept. Money creation, with interest, is usury and requires a ponzi scheme to work, and the confiscation of one's labor to finance (at terms controlled by the same ponzi).

Sun, 07/10/2011 - 20:53 | 1442259 Seymour Butt
Seymour Butt's picture

At least he was honest.

Sun, 07/10/2011 - 14:06 | 1441538 Eternal Student
Eternal Student's picture

"I am sure there is a reason for this, perhaps not a very good reason, but a reason none the less. "

Of course there is. There's an old saying:

I'd rather owe it to you forever, rather than cheat you out of it.

And note that Germany just recently finished paying off its obligations from the Versailles treaty of WWI. What was a big sum then is a pittance now.

 

Sun, 07/10/2011 - 14:33 | 1441605 HungrySeagull
HungrySeagull's picture

Orly?

All those sums a pittiance?

A 1925 built house for a few thousand would require well over half a million today's dollars for the same level of craftmanship that possibly no longer exists in bulk.

Sun, 07/10/2011 - 21:03 | 1442287 Don Keot
Don Keot's picture

An amazing perspective is that the Empire State Building was built for one million dollars.  Today they can't build a grammer school for five million.  How's that for inflation?

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