In the first seven months of Fiscal Year (FY) 2024, net interest (payments minus income) on the federal debt reached $514 billion, exceeding spending on both national defense ($498 billion) and Medicare ($465 billion).
The government cannot create currency with the current structure that keeps banking (fiat currency creation) and politics district. Government gets its funding through the real economy's productivity or through the means of borrowing.
If the economy was to be empowered such that real economic growth became sustainable, deficits and taxation rates could be lowered with some taxes being fully eliminated. In order to arrive here, debt-free liquidity would be required to drive the referenced real growth. The creation, introduction and the circulation of debt-free currency is 100% a free market responsibility because debt-free medium can now ONLY enter circulation safely from the bottom-up. There is NO TOP-DOWN method of achieving this.
The humongous debt bubble MUST safely leak and cannot be allowed to POP ! A POP would be devastating.
So you’re saying that either we have productivity that lifts all boats or bankster capitalism? The last two people to created debt free sovereign notes was Ab Lincoln and JFK and they both served as a warning to other Presidents, who took notice.
Banks are part of the equation for true free market capitalism once the marketplace adds debt-free liquidity into circulation. We need both forms of currency. The current model is not flawed inasmuch as it is incomplete.
The process of "adding the Yang to the Yin" in that completion process has to be market driven. It cannot be initiated from the top-down, thus JFK and Abe were a little early. You can even lump Gaddafi in on that one.
The IMF Articles of Agreement disallow members from monetizing gold or backing their legal tender with gold. It's not that monetizing gold would be a bad thing but it has to be done in the right manner, market driven and working in symbiosis with legal tender , whereby they empower each other.
I remember silver certificates issue by executive order 11110 from the treasury. Any president could do the same. Ellen Brown thinks that every new president is shown the JFK assassination films & files to discourage similar behavior. The presidents need to know who is really in charge. It is the banksters at the Fed, BIS , IMF and World Bank not the president or any elected person or body.
I collected silver certificates and turned them in in 1968, the last day poaaible, for a 100 oz bar. It was done on the steps of the SF Mint. What fun!!!
The whole global price model was still fixed and pegged back then so the time for debt-free money's use by the public would have to wait.
We cannot pour new wine into old wineskins.
You may want to familiarize yourself with Executive Order 11825 written on Dec 31, 1974 and note that this privilege that was restored and given back to the public occurred only after Aug. of 1971 once the pricing model had been handed over to the free market and gold had a fully scalable price.
The consumer now has the monetary stage. Don't sell yourself short.
What may have been the mystery is that you missed the significance of us needing a fully free floating and scalable price model that can then accommodate debt-free trade for massive wealth creation. In 1913, the price model was fixed and pegged and would remain as such until 1971
It's pretty simple when you stop and realize the properties of a highly functional and efficient price model in order to measure value. A fully free floating and scalable model is indispensable to free market principles, the law of supply and demand , economic balancing and market driven price discovery.
Geoff, we didn't have that kind of price model until AFTER Aug. of 1971 because the price of monetary gold had to be set free from the FIXED price peg set by the government. That fixed peg had to be dissolved and relinquished to the marketplace.
There was no way that you and I and others could monetize and spend our own sovereign gold and drive a healthy economy as long as we didn't have an efficient market driven price model to measure the trading value, by agreement.
The caveat is this. As much as free market gold circulation benefits the economy , the people and the government with its debt-free TRANSACTIONS it can only be safely entered into CIRULATION from the bottom-up, by way of consumer spending. There is no way to make the INTRODUCTION from the top-down without creating a massive rush to judgment and what would culminate into a massive debt bubble POP ! That cannot be allowed. That bubble has to safely leak, so the marketplace has been charged with the duty to bring debt-free currency into circulation.
Why? The government is set up to protect and enhance the position and property of the already wealthy. Debt and the creation of money supply benefits those established in power.
The question is why does the government issue debt instead of currency. I thought I gave a fairly glib answer. Perhaps your response was using “you” to refer to the government as all of us not the overbearing market force that it actually is.
I'll keep this simple. There are only 2 forms of liquidity, one being debt based and the other being debt-free.
For an economy to SUSTAIN real economic growth, both forms of currency must be eventually introduced to grease the economic wheels and keep debt completely in control and serviceable. Almost all our transactions, however, utilize the circulation of debt (fiat currency) and that's a dead end street over time.
Unlike the free market, the federal government cannot safely and efficiently introduce debt-free currency into circulation, nor can its central bank. It would be far too dangerous now that the debt bubble is so humongous. The introduction process has to be market governed and bottom-up, thus allowing an organic transition as the economy grows and inflationary debt can then be safely purged.
The debt bubble can safely leak. A POP would be devastating and cannot be permitted, however. It would be a global nightmare
At the moment, we're basically a society of "debt-dealers". Look in your wallet. What's in it ?
“Debt dealers”, and who profits from debt? Those that have the wealth, the power, the class that is protected by, provided for, and at some point in history created government for themselves to profit. Who pays for those profits? Those without, those that pay with their bodies their lives. Those that find little benefit other than security from physical/mental harm from a government directed to protect the upper class debt providers first and foremost for that class to profit and control. In the spirit of keeping it simple that is why government supports the debt economy as opposed to printing more currency. As regards the devaluation of the dollar, it is hard to imagine MMT actions being any worse than that caused by the debt society created by the Federal Reserve over a hundred years ago.
---->>> “Debt dealers”, and who profits from debt?
In the long run, nobody, because inflation will eventually cannibalize productivity and real economic growth.
This is not about the "who" but about the condition of only circulating IOU's and nothing but IOU's. That's a market choice. It's not mandatory !
The government only supports the debt model because it's essential to the debt-free model, something we are embarking on, only now.
Both forms of currency (debt and debt-free) must circulate in order to SUSTAIN real economic growth and widespread wealth creation.
The caveat is that debt-free currency can only be safely created and introduced into the real economy from the bottom-up, organically. That means you and me, as in making a choice. Did you make it yet ???
We need an entry point, an "excuse" to introduce debt-free currency which the public will embrace. Peace dollars promote peaceful enterprises, i.e. worker owned companies, infrastructure projects, people doing useful things. Who's going to argue with that? Plus making them "domestic use only" is a very unique feature. It promotes local development, it appeals to the "America first" mentality. Give it some thought, please. Then give me some constructive input.
Have been reading this for years. Appreciate past info.
However, the US Inc filed bankruptcy in 2018, finalized in 2020. Biden is head of bankrupt corp.
The US dollar is NOT owned by the US but by the Federal Reserve which lends it to the US. The Petro dollar is no more. The Federal Reserve has been finally put under the US [the Republic - not the Corp] Treasury. One of these days the $ will tank - it will not be pretty. Have some gold and/or silver handy.
Since Treasuries are paying 4% and cash in the bank is no longer secure, putting cash into treasuries would be more secure than any commodity, even gold. Keeping cash on hand to buy food and other necessities when the system no longer works, for whatever reason and for a few months, is wise, but for long term security, government issued bonds at interest is a good option. The best option though would be land. Land, water and labor is the basis for all wealth. Land at an altitude of more than 75m or 230 ft and in the Southern hemisphere is the most secure long term for your greatgrandchildren.
The government cannot create currency with the current structure that keeps banking (fiat currency creation) and politics district. Government gets its funding through the real economy's productivity or through the means of borrowing.
If the economy was to be empowered such that real economic growth became sustainable, deficits and taxation rates could be lowered with some taxes being fully eliminated. In order to arrive here, debt-free liquidity would be required to drive the referenced real growth. The creation, introduction and the circulation of debt-free currency is 100% a free market responsibility because debt-free medium can now ONLY enter circulation safely from the bottom-up. There is NO TOP-DOWN method of achieving this.
The humongous debt bubble MUST safely leak and cannot be allowed to POP ! A POP would be devastating.
So you’re saying that either we have productivity that lifts all boats or bankster capitalism? The last two people to created debt free sovereign notes was Ab Lincoln and JFK and they both served as a warning to other Presidents, who took notice.
Banks are part of the equation for true free market capitalism once the marketplace adds debt-free liquidity into circulation. We need both forms of currency. The current model is not flawed inasmuch as it is incomplete.
The process of "adding the Yang to the Yin" in that completion process has to be market driven. It cannot be initiated from the top-down, thus JFK and Abe were a little early. You can even lump Gaddafi in on that one.
The IMF Articles of Agreement disallow members from monetizing gold or backing their legal tender with gold. It's not that monetizing gold would be a bad thing but it has to be done in the right manner, market driven and working in symbiosis with legal tender , whereby they empower each other.
I remember silver certificates issue by executive order 11110 from the treasury. Any president could do the same. Ellen Brown thinks that every new president is shown the JFK assassination films & files to discourage similar behavior. The presidents need to know who is really in charge. It is the banksters at the Fed, BIS , IMF and World Bank not the president or any elected person or body.
I collected silver certificates and turned them in in 1968, the last day poaaible, for a 100 oz bar. It was done on the steps of the SF Mint. What fun!!!
The whole global price model was still fixed and pegged back then so the time for debt-free money's use by the public would have to wait.
We cannot pour new wine into old wineskins.
You may want to familiarize yourself with Executive Order 11825 written on Dec 31, 1974 and note that this privilege that was restored and given back to the public occurred only after Aug. of 1971 once the pricing model had been handed over to the free market and gold had a fully scalable price.
The consumer now has the monetary stage. Don't sell yourself short.
More.... https://www.usgoldbureau.com/content/gold-confiscation
This has always been a mystery to me but the answer I believe is the Jekyll Island meeting between government and the banksters in 1913.
What may have been the mystery is that you missed the significance of us needing a fully free floating and scalable price model that can then accommodate debt-free trade for massive wealth creation. In 1913, the price model was fixed and pegged and would remain as such until 1971
Please tell us more? We need to know what we are not being told?
It's pretty simple when you stop and realize the properties of a highly functional and efficient price model in order to measure value. A fully free floating and scalable model is indispensable to free market principles, the law of supply and demand , economic balancing and market driven price discovery.
Geoff, we didn't have that kind of price model until AFTER Aug. of 1971 because the price of monetary gold had to be set free from the FIXED price peg set by the government. That fixed peg had to be dissolved and relinquished to the marketplace.
There was no way that you and I and others could monetize and spend our own sovereign gold and drive a healthy economy as long as we didn't have an efficient market driven price model to measure the trading value, by agreement.
The caveat is this. As much as free market gold circulation benefits the economy , the people and the government with its debt-free TRANSACTIONS it can only be safely entered into CIRULATION from the bottom-up, by way of consumer spending. There is no way to make the INTRODUCTION from the top-down without creating a massive rush to judgment and what would culminate into a massive debt bubble POP ! That cannot be allowed. That bubble has to safely leak, so the marketplace has been charged with the duty to bring debt-free currency into circulation.
The consumer now has the monetary stage.
Sounds reasonable.
When decentralizing , don't stop at the state level. Take it right down to the individual whereby they use debt-free money they actually own.
Why do we pay taxes when the Fed can just print limitless sums of money?
Because they have the guns.
Why? The government is set up to protect and enhance the position and property of the already wealthy. Debt and the creation of money supply benefits those established in power.
You are permitted to create and utilize your own debt-free money as a legal market process. Whether you do or don't is a matter of market choice.
Are you only circulating IOU's ?
The question is why does the government issue debt instead of currency. I thought I gave a fairly glib answer. Perhaps your response was using “you” to refer to the government as all of us not the overbearing market force that it actually is.
I'll keep this simple. There are only 2 forms of liquidity, one being debt based and the other being debt-free.
For an economy to SUSTAIN real economic growth, both forms of currency must be eventually introduced to grease the economic wheels and keep debt completely in control and serviceable. Almost all our transactions, however, utilize the circulation of debt (fiat currency) and that's a dead end street over time.
Unlike the free market, the federal government cannot safely and efficiently introduce debt-free currency into circulation, nor can its central bank. It would be far too dangerous now that the debt bubble is so humongous. The introduction process has to be market governed and bottom-up, thus allowing an organic transition as the economy grows and inflationary debt can then be safely purged.
The debt bubble can safely leak. A POP would be devastating and cannot be permitted, however. It would be a global nightmare
At the moment, we're basically a society of "debt-dealers". Look in your wallet. What's in it ?
“Debt dealers”, and who profits from debt? Those that have the wealth, the power, the class that is protected by, provided for, and at some point in history created government for themselves to profit. Who pays for those profits? Those without, those that pay with their bodies their lives. Those that find little benefit other than security from physical/mental harm from a government directed to protect the upper class debt providers first and foremost for that class to profit and control. In the spirit of keeping it simple that is why government supports the debt economy as opposed to printing more currency. As regards the devaluation of the dollar, it is hard to imagine MMT actions being any worse than that caused by the debt society created by the Federal Reserve over a hundred years ago.
---->>> “Debt dealers”, and who profits from debt?
In the long run, nobody, because inflation will eventually cannibalize productivity and real economic growth.
This is not about the "who" but about the condition of only circulating IOU's and nothing but IOU's. That's a market choice. It's not mandatory !
The government only supports the debt model because it's essential to the debt-free model, something we are embarking on, only now.
Both forms of currency (debt and debt-free) must circulate in order to SUSTAIN real economic growth and widespread wealth creation.
The caveat is that debt-free currency can only be safely created and introduced into the real economy from the bottom-up, organically. That means you and me, as in making a choice. Did you make it yet ???
Why do I fart when I can laugh?
Brilliant article kudos for Ellen.
Many thanks for not putting the comments behind a paywall - times are tough enough as they are plus it enables people to continue communicating.
Thanks!
Ellen: Please look at this . . . https://warismakinguspoor.com/peace-dollars/
Thanks, looks interesting.
We need an entry point, an "excuse" to introduce debt-free currency which the public will embrace. Peace dollars promote peaceful enterprises, i.e. worker owned companies, infrastructure projects, people doing useful things. Who's going to argue with that? Plus making them "domestic use only" is a very unique feature. It promotes local development, it appeals to the "America first" mentality. Give it some thought, please. Then give me some constructive input.
Have been reading this for years. Appreciate past info.
However, the US Inc filed bankruptcy in 2018, finalized in 2020. Biden is head of bankrupt corp.
The US dollar is NOT owned by the US but by the Federal Reserve which lends it to the US. The Petro dollar is no more. The Federal Reserve has been finally put under the US [the Republic - not the Corp] Treasury. One of these days the $ will tank - it will not be pretty. Have some gold and/or silver handy.
Since Treasuries are paying 4% and cash in the bank is no longer secure, putting cash into treasuries would be more secure than any commodity, even gold. Keeping cash on hand to buy food and other necessities when the system no longer works, for whatever reason and for a few months, is wise, but for long term security, government issued bonds at interest is a good option. The best option though would be land. Land, water and labor is the basis for all wealth. Land at an altitude of more than 75m or 230 ft and in the Southern hemisphere is the most secure long term for your greatgrandchildren.
Do you really believe 4% beats inflation ?
It does beat the mattress.
Why does the govt borrow (and pay interest to the bond buyers) when the govt can lend (and collect interest from the loan borrowers)?
A New Monetary System with A New National Bank
https://open.substack.com/pub/william3n4z2/p/a-new-monetary-system-with-a-new?r=1kb28q&utm_campaign=post&utm_medium=web
The Great Bankster Debt Scam!
https://open.substack.com/pub/william3n4z2/p/the-great-bankster-debt-scam?r=1kb28q&utm_campaign=post&utm_medium=web
So theye can tax you to pay interest. If it was printed, they wouldn't have to.
If they print, it would be a conflict since they like to spend like drunken sailors.
They can get massive revenue from real economic growth. We should focus there.
Debt & compound interest.
Miliary hardware 25 years obsolete.
Global military lineup now Russia, China, Iran, Turkey, then US.
Expanding military fronts.
Recruitment at 10%.
Navy withdrawn from West Pacific.
NATO soon to implode.
EU disintgerating.
US out of central and west Africa.
Military hardware 9 times the cost paid by adversaries.
28 Million illegal immigrants.
Saudi dumps petrodollar.
That is a fair lineup of problems for any Empire. God knows what it means in dollars. The obsolesence factor alone is more than $4 trillion.