Why the National Debt Can’t Be Paid Off

There isn’t a reasonable politician, economist, or citizen who believes the national debt shouldn’t be paid off, but what if it couldn’t be repaid? What if the United States government was involved in a never ending cycle of debt? This iteration of debt is just one of the deceitful cons perpetrated by the Federal Reserve upon the American people.

When Congress passes a bill and appropriates a certain amount of money for warfare, welfare, or just about anything, the cost is advanced to the Department of Treasury. The Treasury does not create money, but instead borrows money from the Federal Reserve System, which is a private system of banks. Because the Federal Reserve is the only institution in the world which can legally print the US Dollar, the federal government must borrow from it. This also means that the Federal Reserve has a monopoly on the monetary system of the United States. If you or I attempted to give a certain value to a piece of green paper, we’d be serving sentences in prison, but when the Federal Reserve gives arbitrary values to pieces of green paper, which are backed by nothing, it is called legal tender. When the Treasury borrows money from the Federal Reserve, the money is borrowed with interest:

After borrowing any amount of money with interest, the money borrowed + interest is added to the total national debt. Let’s assume that $ + interest is the initial amount borrowed, where $ could be any amount ($ is a variable).

At this point, the national debt = $ + interest and the money borrowed($) has been spent.

Now, lets say the United States government wants to repay its debt. Where does the government acquire the money needed to repay the debt to the Federal Reserve? From the Federal Reserve since the Fed is the only issuer of the United States Dollar. In order to repay the national debt of $ + interest, more money with interest must be borrowed from the very system to which it was originally owed:

The image above depicts what would occur if the treasury attempted to repay the debt. ($ + interest) + interest would be borrowed.

So now, the national debt is: ($ + interest) + interest
.
It is obvious that in trying to repay the debt, the government only incurs more debt because of the monopoly the Federal Reserve has upon the currency. This cycle makes it impossible for the national debt to ever be paid off. As long as the United States government borrows money from the Federal Reserve, the national debt will only grow. This leads to more problems including hyperinflation because every dollar borrowed from the Federal Reserve devalues every existing dollar.

The only true solution to this problem is the abolishment of the unconstitutional Federal Reserve. A return to a gold or silver standard would prevent any institution from printing money out of thin air and allocating money with ease. Allowing for competitive currencies would prevent monetary monopolies from being created and would allow for a truly free market economy. As long as the Federal Reserve remains in existence, the national debt will continue to grow.

END THE FED!

http://www.unelected.org/2010/07/24/why-the-national-debt-cant-be-paid-off/

 

The Fed doesn't force the Treasury to borrow money...

Here's a thought - stop spending more than you bring in. That would pretty much do it right there.

 

but if we do that, how are we gonna pay for the troops in Iraq and Afghanistan? How are we gonna afford the food stamps and extended unemployment benefits?

 

Now, lets say the United States government wants to repay its debt. Where does the government acquire the money needed to repay the debt to the Federal Reserve? From the Federal Reserve since the Fed is the only issuer of the United States Dollar. In order to repay the national debt of $ + interest, more money with interest must be borrowed from the very system to which it was originally owed:

taxes

abolish the fed +1

 

Oh no, surely not this again...

EDIT: And yes, I forgot to mention that the original article is also a total load of bollox.

 

Our National Debt can never be paid off because.... there is no constituency for doing so.

 

The treasury only borrows the money if it doesn't have it. It is constantly receiving a little source of income we call taxes. Same for paying off the debt.

The idea that the fed is the only source of funds for the gov't is completely false.

 

It will never be paid off because once Bush blew the surplus he inherited up, the Dems, as a simple matter of practical politics, will never again even attempt to bring in a surplus. Why should they?
Or to quote an astute foreign observer:

The political genius of supply-side economics

 

If the USA government would spend less than they bring in, they wouldn't need to borrow money in the first place.

Abolish wasteful big government +1

 

You're a partisan friggin' idiot.