How are so many countries going into debt?

[Warrior_of_Freedom]

Where is all the money Eh?? Someone has to have it.

[dannno]

The banks create it out of thin air and collect interest.

It's a scam.

[Inflation]

All countries are economic satellites of the Central Central Bank in Zurich.

Economic independence is not allowed. All must pay tribute to the gold hoarding Gnomes!


http://beautifulnoise.files.wordpress.com/2008/10/248065.jpg

John F. Kennedy
vs
The Federal Reserve


On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business. The Christian Law Fellowship has exhaustively researched this matter through the Federal Register and Library of Congress. We can now safely conclude that this Executive Order has never been repealed, amended, or superceded by any subsequent Executive Order. In simple terms, it is still valid.

When President John Fitzgerald Kennedy - the author of Profiles in Courage -signed this Order, it returned to the federal government, specifically the Treasury Department, the Constitutional power to create and issue currency -money - without going through the privately owned Federal Reserve Bank. President Kennedy's Executive Order 11110 [the full text is displayed further below] gave the Treasury Department the explicit authority: "to issue silver certificates against any silver bullion, silver, or standard silver dollars in the Treasury." This means that for every ounce of silver in the U.S. Treasury's vault, the government could introduce new money into circulation based on the silver bullion physically held there. As a result, more than $4 billion in United States Notes were brought into circulation in $2 and $5 denominations. $10 and $20 United States Notes were never circulated but were being printed by the Treasury Department when Kennedy was assassinated. It appears obvious that President Kennedy knew the Federal Reserve Notes being used as the purported legal currency were contrary to the Constitution of the United States of America.

"United States Notes" were issued as an interest-free and debt-free currency backed by silver reserves in the U.S. Treasury. We compared a "Federal Reserve Note" issued from the private central bank of the United States (the Federal Reserve Bank a/k/a Federal Reserve System), with a "United States Note" from the U.S. Treasury issued by President Kennedy's Executive Order. They almost look alike, except one says "Federal Reserve Note" on the top while the other says "United States Note". Also, the Federal Reserve Note has a green seal and serial number while the United States Note has a red seal and serial number.

President Kennedy was assassinated on November 22, 1963 and the United States Notes he had issued were immediately taken out of circulation.

http://www.john-f-kennedy.net/thefederalreserve.htm

[torchbearer]

The banks create it out of thin air and collect interest.

It's a scam.

this.
there is no honest money left.

You ask me for a loan. I go to my computer and print out some bills for you.
You owe that money back plus some.

[Stary Hickory]

Well what the OP is saying is valid. I have thought this as well. It gets really convoluted when you start thinking about it. If everyone is in debt, then we get to a point where in order to really borrow you have to go into super debt.

It's crazy really how messed up it is. It's almost like the theory of relativity. In relation to each other who has borrowed the most, because another country can borrow some back and what not but the guys who borrow the most must be sucking in more resources.

The system is so scammy that it's hard to determine what belongs to whom anymore.

[RideTheDirt]

this.
there is no honest money left.

You ask me for a loan. I go to my computer and print out some bills for you.
You owe that money back plus some.
this

The money come from computers and printers. No manual labor required!

ez money for the banksters

[__27__]

Fiat currency. BTW, Fiat currencies cannot exist without governments. ;)

[YumYum]

Griffin points out in his book that all the nations should all go into inflation at the same rate. What has happened is that the US has jumped ahead of the whole group by taking on more debt than anybody in history. We can get away with it because of our world reserve currency status. The dollar will continue to get stronger as investors flee the stock market and commodities, when interest rates are raised, which will be announced next Tuesday.

[Bucjason]

ever growing socialist entitlements , that's how...

[MelissaWV]

What folks have already said, pretty much.

When I borrow money, I "promise" to pay it back, and I also promise to pay interest. This promise assumes that I will have the money, of course, and that I will have the additional money to pay interest. This imaginary "promise" money doesn't exist yet, and possibly never will. The person I borrowed money from, knowing that they might need to shore up their own accounts in the short term, will borrow from somewhere else. Now, they are depending not only on making money through their "regular means," but they are also depending on the additional money they'll get back in the form of my interest payments. This goes around and around and around.

Added to this is the fiat nature of not just our money... but what we're buying with it. Yes, I'm stretching the definition a bit to put things in perspective. Once upon a time, you bought mostly goods. This was trade, but with the trade contingent upon the trust the vendor put in the buyer's currency rather than a straight barter. Go through the things you pay for in a month. I'm sure you have many tangible things you buy like, for instance, groceries. What else? You buy a large number of services. You pay into taxes. You pay on loans. You pay your credit card bills. You invest in the stock market.

Money is swirling around and around, and if the entire monetary system collapsed tomorrow very few people would have much of worth. Assume for a moment that contracts are honored even after this collapse. How many people would lose their homes to the bank? Their land? Their cars? There is a massive illusion of ownership in this country, and it's really pretty scary. Even if you rent, your landlord probably doesn't own the building you're renting a unit in.

So basically we're all promising each other more and more money, and we're desperate or stupid enough to believe one another and continue to loan and expect interest and dream of increasing our wealth, while we own almost nothing of our own as a nation.

:mad:

[__27__]

Great writeup Melissa!