…And which the American people continue to fall for
[This article is one I first published in June of 2017. It explains the source of, and solution to, the US national debt. The source is that the US money supply is issued, at interest, not from the US Treasury, but from private banks. Practically every dollar in circulation is paying interest to Wall Street banks. The solution is very easy, and amounts to the US Treasury Department flipping a switch in the manner dollars are created, and becoming the issuer of the currency, rather than debt.]
Friends, have you ever stopped to consider why the US Government, the most powerful government on earth, regarded the world’s only superpower, seemingly cannot pay its bills without borrowing money? Isn’t there something fundamentally incongruous about a “most powerful government on earth” that has no wherewithal to pay its own way? And consider this, that the next 200 largest and most powerful national governments, operating under similar systems, are also in debt up to their eyeballs. We are talking, trillions and trillions of dollars here. We are talking debt that can never be paid back-ever, ever, ever. Would a lender, truly at-risk, really consider making those kinds of loans?
Now with all that money owed by practically every national government around the world, wouldn’t an inquisitive mind wonder who the final lender behind all those loans might be? I mean, who is so well-healed as to possess the capacity to loan out that kind of money, going to all those national governments, loans without which those governments, seemingly, cannot pay their bills, especially considering that the entire sum of loans can never be paid back? And if all those governments really need such a wealthy but questionably-sane benefactor as a source of debt financing, then consider what it might mean were that source no longer available, or perhaps no longer willing, to loan funds from what can only be a bottomless pit of money.
But before I get ahead of myself I want you to do something. I want you to try to forget everything you ever imagined about fiscal responsibility in government. Forget all you ever knew about balanced budgets, debt ceilings and the need to control government spending. Forget any idea that US Government must “live within its means,” or certainly that US government revenues might ever accrue in sums that could begin to pay off the national debt, deal?
Next, I want you to open your minds to a new paradigm, a new horizon beyond the one impressed upon your thinking processes since childhood. Let this moment be a turning point in your grasp of the true nature of our federal government’s fiscal imbalances. You see, the big secret they don’t want you to know is that the US Government borrows to pay its bills simply because it chooses to. And except for that really bad choice made over 100 years ago as the Federal Reserve Act passed into law, and which congress continues to honor and accede, the US Government might NEVER have to borrow, just to pay its everyday bills. On that day in 1913 the US Government gave away the franchise to issue legal tender to an “independent agency,” the Federal Reserve, whose product (i.e., money) and operations are owned and controlled, respectively, by private bankers whose activities remain secret, even from congress.
Except for that errant choice by lawmakers, exercised long before we were born, things would be entirely different. The US Treasury Department, rather than a handful of private bankers, would control and issue American currency, and get this, at zero interest cost to the government! And the private banks of the Federal Reserve Central Banking System, which now own and control the US currency and charge us interest to use it, would themselves borrow, ironically from the people, through their government, and operate with the people’s money rather than their own. Rather than printing money out of the air and lending it at no real risk, what are now Federal Reserve Banks would be forced to compete for an honest living just like anyone else. They would understand that making bad loans would have real consequences. Under the circumstances I describe, it would be unlikely any bank could ever grow so large as to become “too-big-to-fail.”
Had not the Federal Reserve Act become law, the tables would be turned. Rather than the US Government paying interest on money it opts to borrow just to keep its doors open, the US Treasury Department would issue the currency, paying its bills and loaning it to primary lenders heading up a national banking system. And the government would receive its cut of interest on all outstanding loans issued throughout the system, just like the private Fed banks receive today. Because dollars are literally created when loaned into circulation, under our present system the private banks of the Federal Reserve System receive interest on practically the entire US money supply! But by virtually flipping a switch,
the US Treasury Department could replace the Fed as the issuer of American currency and receive interest payments on all that it lends out, those revenues going to fund the government. Eventually, by eliminating the need to service a national debt, and becoming the issuer of currency itself, the US Treasury could also eliminate the need to borrow and tax income.
As a consequence of reversing the roles established in 1913, there would be no reason for a federal income tax, not even a Fair Tax. That is because the US Government, confined to the purposes of the US Constitution, would operate almost exclusively off interest, excise taxes, tariffs and fees for various services it renders.
A sovereign government possessing no real means to carry out its chosen policies is not sovereign at all. The true sovereign controlling the US Government is that institution possessing the means to both direct policy and channel resources to implement it. The real sovereign of the United States of America is therefore the Federal Reserve and the private banks that own and control it. The Fed is a debt creation machine, a wealth transfer mechanism, increasingly impoverishing America each moment of every day while enriching the bankers who issue the currency. As long as the Fed stays in operation, it will remain mathematically impossible for America to become a nation other than one completely encumbered in debt.
It does not have to be this way. It can be solved simply by flipping that switch I told you about. As debt comes due, rather than borrow more Fed notes to pay them, the Treasury Department would pay off each Fed dollar, replacing it one-for-one with public dollars, US Notes, gradually liquefying the US economy with funds necessary for growth, but which, importantly, do not have to be paid back. Lest you wonder, flipping that switch can be done tomorrow by order of the President of the United States. The possibility that President Trump may actually do that is the primary source of fear-inspired lunacy we witness in the DC establishment and all that it represents. That switch operates a large valve. And once that valve is opened, the real swamp that is Washington, DC, and from which the biggest scam in the history of mankind operates, begins to drain in earnest.
And rest assured, if I know this, and now you know it, Trump knows it. And they all know he knows it, which should explain a lot.
