The National Debt Will Destroy America As We Know It

Some people argue that the national debt is not a big deal. Here are my responses to three such arguments:

1) Argument: The national debt can be reduced by a combination of tax hikes and spending cuts.

Response: No, it cannot. The debt is simply too big. When you factor in the projected shortfalls in Medicare and Social Security, the true size of the national debt is around $200 trillion. Spending cuts can’t solve the problem. Interest payments on the national debt will become the largest expenditure in the federal budget by 2020, to say nothing of paying down the actual principal. Spending on Medicare and Social Security will consume all remaining federal revenue by 2040. In other words, the government would have to eliminate all discretionary spending (military, education, agriculture, transportation, energy, etc.) just to meet existing obligations to creditors and the elderly. Tax hikes won’t help, either. Even if the government confiscated all the assets of the rich and the profits of every Fortune 500 company, the loot could only fund existing federal operations for ONE YEAR. In fact, it is now mathematically impossible for the U.S. government to pay off the national debt since the US government now owes more dollars than actually exist. Even if the U.S. government stole every penny from every American AND confiscated all physical assets in the United States and sold them off to foreigners—it STILL would not have enough money to pay off the national debt.

2) Argument: Since the U.S. government controls the amount of dollars in circulation, it can keep inflation under control.

Response: The U.S government does not issue currency. The Federal Reserve does. The Federal Reserve is a private bank owned and operated for profit. When the U.S. government needs to borrow more money, it asks for dollars from the Federal Reserve. The Federal Reserve gives the government dollars in exchange for U.S. Treasury bonds (debt owed—with interest—to the Federal Reserve). In other words, for more dollars to enter circulation, the U.S. government has to go deeper into debt. The criminals who designed this system never intended for the national debt to be paid off. It was designed to enslave the American taxpayers to a powerful group of elite international bankers. It is corrupt and rotten to its core. The apocalypse will come when the US can’t make interest payments on its accumulated national debt. Sovereign default will trigger a chain reaction of bank failures that will end in a hyperinflationary depression. It could all go down in a matter of months because most banks are inter-dependent through fractional reserve banking, bullshit derivatives, toxic assets, and worthless government I.O.U.’s.

3) Argument: Since the U.S. government pays interest on its foreign debts in dollars, all the money will eventually come back to the U.S.

Response: This is true as long as the dollars remain in circulation. However, most new U.S. government debt is purchased by the Federal Reserve, not foreign governments. When debt is repaid to the Federal Reserve, dollars are actually removed from the system.

Conclusion

The national debt is a huge problem. It’s common sense. If you make $40,000 a year and have $100,000 in credit card debt, you would be in serious trouble. With the real U.S. government debt surpassing real U.S. GDP by many magnitudes, common sense dictates that America is in serious economic peril. Surprisingly, most economists don’t see it that way. In their eyes, common sense does not apply to their field of expertise. What’s true on the individual level is not true on the macro-level for all kinds of fancy-schmancy reasons that only academics are smart enough to understand.

The only way to end America’s debt slavery is to repudiate the national debt, abolish the Federal Reserve, and legalize competing currencies. That won’t happen because our government is owned by an evil banking cartel. The good news is that the current system cannot last forever. No government can go deeper and deeper into debt without collapsing eventually. The bad news is that economic collapse will be followed by a period of civil unrest, martial law, and possibly revolution. The mess in Europe is a preview of what’s coming to America. I would like to believe that people will behave in civilized and cooperative ways when facing mass unemployment, depleted savings, food shortages, and skyrocketing prices. Judging by how they act when Air Jordans go on sale, I have my doubts. I would also prefer that the sociopaths who control the Washington-Wall Street Axis of Evil will find honest work as burger-flippers when their cherished institutions finally go kaput. Judging from the bankster bailouts, the police state, Constitution-shredding legislation, and the martial law preparations underway in Europe and America, it seems the elite are prepared to do whatever is necessary to hold onto their power and privileges. We must be prepared to do whatever is necessary to stop them.