Jump to content

Paying Down The Debt Is Now Almost Mathematically Impossible


humble3d

Recommended Posts

nPaying Down The Debt Is Now Almost Mathematically Impossible

dPnGD1E.jpg

Exactly 199 years ago, in 1815, a “temporary” committee was established in the US Senate called the Committee on Finance and Uniform National Currency.

It was set up to address economic issues and the debt accrued by the US government after the War of 1812.

Of course, because there’s nothing more permanent than a temporary government measure, the committee became a permanent one after just one year.

It soon expanded its role from raising tariffs to having influence over taxation, banking, currency, and appropriations.

In subsequent wars, notably the American Civil War, the Committee was quick to use its powers and introduced the union’s first income tax. They also detached the dollar from gold to help fund the war.

This was all an indication of things to come.

Over the subsequent decades there was a sustained push to finally establish the country’s central bank that will control money and credit, as well as institute a permanent income tax to feed the expanding aspirations of government.

They succeeded in 1913 when the Federal Reserve Act was passed and the 16th Amendment ratified, binding the country in the shackles of central banking and taxation of income.

Over the century that followed, the US has gone from being the biggest creditor in the world to its biggest debtor.

Decades of expanding government programs, waste, endless and costly wars, etc. have racked up such an enormous pile of debt that it has become almost impossible to pay it down.

A lot of folks don’t realize that, since the end of World War II, the US government’s total tax revenue has been almost constant at roughly 17% of GDP.

In other words, even though the actual tax rates themselves rise and fall, the government’s ‘slice’ of the economic pie is almost always the same - 17%.

I’ve worked out a mathematical model which shows that, even with absurd assumptions (7%+ GDP growth for years at a time, low interest rates, etc.), it is simply not feasible for the US government to ‘grow’ its way out.

Default has become the only option. And that could mean a number of things.

They could default on their creditors (other governments like China who loaned money to the US government). But this would spark a global financial and banking crisis.

They could default on the Federal Reserve, which owns trillions of dollars of US debt. But this would create an epic currency crisis for the US dollar.

They could also default on their obligations to their citizens—primarily to future beneficiaries of Social Security (who collectively own trillions of dollars of US debt).

Or they could choose to default on their obligations to every human being alive who holds US dollars… and engineer rampant inflation.

None of these is a good option. And simply put, the US government has reached a point of no return.

http://www.zerohedge.com/news/2014-12-12/paying-down-debt-now-almost-mathematically-impossible

NO WORRIES... SPEND IT ALL...

IVBCfAm.gif

Link to comment
Share on other sites


  • Replies 9
  • Views 1.4k
  • Created
  • Last Reply

In the long-run, no country can actually pay its dept to the world loan-sharks.

Things take place in such a way that world bankers, financiers

have hold countries under financial siege.

Politicians are just puppets who give people the illusion of democracy...

Link to comment
Share on other sites


and now the most powerful of the world bankers who hold all the debt notes are all in China..so now WHO is the new evil empire.... not the USofA as inofwars and their minion followers will have you believe....if China called in all their loans at noon tomorrow, America would have to declare bankruptcy one minute later

edit: spelling

Link to comment
Share on other sites


America has declared bankruptcy more than once already and currently exists in the aftermath of it.

I realize this is ancient history to most - but the country actually started off owing large debts and the 1st really bad bankruptcy was in 1913.

Between these things and the confiscation and losses of all its gold - all it has had for many decades of any value is the work of its laborers to promise in exchange for anything.

Link to comment
Share on other sites


Between these things and the confiscation and losses of all its gold - all it has had for many decades of any value is the work of its laborers to promise in exchange for anything.

The difference in this century than last in the USA . They had laborers and factories to pay back the debut . In this century most every thing in the USA has shutdown and imported from mostly China and Mexico . Sooner are latter no one can afford to buy anything from China but the very rich . No good will come of this . The USA use to be a great exporter of goods and was self dependent .But now they mostly import cheap stuff to the masses who are running out of money .

Link to comment
Share on other sites


So I wonder if you took all the debit in the world, how much of it is real and how much of it has been conjured up via FSB and shady money/trade manipulations.

I bet you all the government money in the world would be less than all the recorded debt in the world.

Link to comment
Share on other sites


and now the most powerful of the world bankers who hold all the debt notes are all in China..so now WHO is the new evil empire.... not the USofA as inofwars and their minion followers will have you believe....if China called in all their loans at noon tomorrow, America would have to declare bankruptcy one minute later

edit: spelling

Except China only holds around 8 percent of US debt. So that wouldn't bankrupt the system. The Federal Reserve bank system would just absorb that and life would go on.

Who holds US Debt?

http://www.factcheck.org/2013/11/who-holds-our-debt/

Link to comment
Share on other sites


The real problem is the revenue intake. Corporations and the rich in US control the political system and have made sure they can pay lower taxes. That is the main cause of the debt. Time to tax them. Corporations demand spending on military to protect their interests worldwide and at the same time refuse to pay for those services.

Corporations are ruining the world.

Link to comment
Share on other sites


Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...