IPFS News Link • Government Debt & Financing
After the Collapse: Six Likely Events That Will Follow an Economic Crash
• shtfplan.comThe US government has run up trillions of dollars in debt, and given the recent debates over the country’s debt ceiling, we can rest assured that neither Congress or the President will act to curtail spending and balance the budget. We will continue adding trillions of dollars to the national debt clock until such time that our creditors no longer lend us money.
From the monetary side, the Federal Reserve’s response to this unprecedented crisis has been to simply “print” more money as is necessary. On top of the trillions in dollars already printed thus far, the Fed continues quantitative easing to the tune of about $80 billion per month. It’s the only arrow left in the Fed’s quiver, because failing to inject these billions into stock markets and banks will lead to an almost instant collapse of the U.S. financial system.
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1 Comments in Response to After the Collapse: Six Likely Events That Will Follow an Economic Crash
1. Congress authorizes the Federal Reserve Bank into existence.
2. Congress makes all the money in the country to be Fed Res Notes, printed by the Federal Reserve Bank. Of course, there are all kinds of limits and controls as to how and when the Fed can print money, but ...
3. The only way that Fed money (the only allowable national money) can get into the American economy, is through either the Government or the people borrowing it from the Fed.
4. In other words, the Fed prints it (or makes ledger entries) and loans it to the people... only way.
5. The people owe it all, plus interest, back to the Fed. In addition, the people want more money because of the increasing population and growing economy, so they are offered more loans.
6. So where are the people going to get the funds to pay back the interest on the loans, since, all the money constitutes repayment of principal?
7. This is the big Ponzi scheme perpetrated on the people by Congress and the Federal Reserve Bank.
8. Because it is a Ponzi scheme, the whole national debt is a lie. There never was any loan. There never was any debt. It was all a creation of new money, created by the signatures of the borrowers on the promissory notes (and other paper).
9. In fact, because the banks treat the promissory notes (and other paper) as money, and then never return value for value on that money, but rather keep it and sell it to other investing entities, IT IS THE BANKS THAT OWE ALL THE MONEY TO THE PEOPLE AND THE GOVERNMENT, not the other way around.
10. You been played. Your parents, grandparents and great-grandparents have been played.
11. Any time there is an article about the national debt, and the debt of the people and/or Government, if the above is not alluded to, the writer doesn't know what he is talking about, or else he is on the bad guys' team. (Bad guys = the Fed and the Gov.)