America in Bankruptcy

According to a recent report from Jerome Corsi at World Net Daily, when one adds together all of our current debt obligations including Social Security, Medicare and Medicaid we now have a total National Debt of $65.5 trillion. This is larger than the GDP of the entire world! That means that it would take the yearly output of every country in the world to equal the amount of our current debt.

Thomas Jefferson considered this kind of debt immoral:

“We must not let our rulers load us with perpetual debt…the principle of spending money to be paid by posterity under the name of funding is but swindling futurity on a large scale.”

How does it make sense then to spend over $800 billion in the Obama stimulus package? Why do Liberal politicians take it as an article of faith that going further into debt to spend more public money will somehow improve our economic condition? The answer can be found in Keynesian economic theory and the debt-based monetary system.

Everyone’s heard about the $50 billion Ponzi scheme perpetrated by Bernie Madoff. This was a scam where Madoff lured investors with the payment of huge returns that were financed, not by profits, buy by money received from new investors. The idea is that each investor can make a significant return as long as more suckers are found to feed the system before it dies from its own inevitable decline. On the front end, investors reap exponential rewards but only as long as they can enlist a perpetual, exponential number of new players!

Our Social Security system is configured in this same unsustainable manner as well. In the beginning, there were 16 workers contributing for every one recipient. Today, there are only three.

FDR’s New Deal was supported by the economic theories of John Maynard Keynes. The basic thrust of this school of thought contends that government-based deficit spending is a stimulus for the economy. Jobs and wealth are supposedly created when governments go into debt to spend taxpayers money on politically-favorable projects, aka pork. However, it was FDR’s own Treasury Secretary, Henry Morgenthau, who testified to its failure. In May 1939, before the House Ways and Means Committee Morgenthau stated, “after eight years of this Administration we have just as much unemployment as when we started, [17%], and an enormous debt to boot."

The second component to our problem is our debt-based monetary system. Every dollar that is issued, or that is in circulation, represents one dollar of indebtedness plus interest owed. In other words, at any given time, there is always more debt than actual money in existence. For example: if I loan you a dollar today at interest and there’s no other source of money- you could, conceivably, pay back the dollar of principle but where do you obtain the additional interest?

The secret is to stretch out the repayment schedule so you can acquire the additional amount from others in the economy who are also operating on borrowed dollars. So you see, at any point in time it would be impossible to retire all debts. There’s always more debt than currency. The trickery is further disguised by what is known as the fractional reserve banking.

All banks are insolvent. At any given time all depositors could go to their bank, demand their deposits, and the bank would have to close. Why? Because our Federal Reserve Banking System allows banks to count deposits as both assets and liabilities. The same money can be used as an asset to leverage loans while also being a liability owed to the depositor. Keeping one-tenth of the money in reserve is the fractional system. It is inflationary and usurious by design and the real reason why we need such massive taxes. The tax collections serve to siphon-off excess currency.

Until we get free of our debt-based monetary system, fractional reserve banking and the Keynesian model of perpetual debt through New Deal ventures like the current stimulus, we’ll never break free. We have approached the time of reckoning where the Ponzi scheme begins to fail. If we don’t reclaim our sovereignty and property rights soon, all of America will be in receivership!

Thomas Jefferson also warned, “if the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and the corporations which grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” (send comments to WFC83197@aol.com, or mail to POB 114, Jacksboro, TN 37757)