Posted 1 year ago on Oct. 10, 2011, 7:16 p.m. EST by Poplicola
from Jersey City, NJ
This content is user submitted and not an official statement
David Walker, former US Comptroller General and chief of the GAO, warned before the 2004 election that if large economic changes were not made, by 2009 the United States and its taxpayers would not be able to afford the interest payments on the national debt. A study authorized by the US Treasury in 2001 found that in order to keep servicing the debt at its current rate of growth, by 2013 income taxes would need to be raised to 65%.
If the United States cannot afford to pay the interest on its debts, that would be the final stage of economic collapse and hence result in a total textbook bankruptcy. The systematic crisis would in turn spread to the rest of the world.
How did this happen? Why is the US national debt $14,819,350,000+? Of the 203 countries in the world today, only four (!) do not owe others money. The collective external debt of all the governments in the world is now above 40 trillion dollars and this number doesn’t include the massive about of household debt in each country.
The whole world is basically bankrupt. But how? How can the world as a whole owe money to itself? Obviously, it’s all nonsense. There is no such thing as ‘money’. There are only planetary resources, human labor and human ingenuity. The monetary system regulated by Federal Reserve is nothing more than a game… and an outdated and dysfunctional one at that. Those in positions of social power alter the rules of the game, at will. The nature of those rules is guided by the same competitive, distorted mentalities that are used in everyday “monetary” life, only this time the game is rigged at its root to favor those who run the show. For example, if you have 1 million dollars and put it into a CD at 5% interest, you are going to generate $50,000 a year simply for that deposit. You are making money off of money itself… paper being made from other paper … nothing more - no invention - no contribution to society – no nothing.
That being denoted, if you are a lower to middle class person, who is limited in funds, and must get interest based loans to buy your home or use credit cards, then you are paying interest to the bank, which the bank is then using, in theory, to pay the person’s return with the 5% CD! Not only is this equation outrageously offensive due to the use of usury (interest) to ‘steal from the poor and give to the rich’, but it also perpetuates class stratification by its very design, keeping the lower classes poor, under the constant burden of debt, while keeping the upper classes rich, with the means to turn excess money into more money, with no labor.
That reality aside, there are other games in the system which have worked for decades, but are just now starting to bloom into the inevitable mathematic disasters that should have been anticipated 100 years ago. The point is, our system is broken. Simple policy change will not solve our debt problem. We need to alter the governmental paradigm if we wish to repay our debt. First step: our government must fire the Federal Reserve Board.