There is no financial debt to the US!
Who do we borrow OUR own money from??
Good Question: Now for an explanation you won't believe!!
It started long, Long, LOng, LONg, LONG ago;
in a galaxy so far, far, far, away, you just will not believe.
What really is a United States Dollar?
Keep that statement in mind, because the "United States Dollar" belongs to you. The United States Constitution provides for the government "to coin money." So that truly makes it OUR money. So, money was 'coined' to provide for the exchange of goods and services with a known value. So the question arose as to setting the value of OUR "coins." So how do you set the value of your coin? Originally, the "Silver dollar" set the standard at 371.25 grains (24.056 g) of silver. So now everyone understood the value of the exchange. Then came the "gold standard" that set the value of OUR "gold coin" at 23.2 grains (1.50 g), finally settling at 23.22 grains (1.505 g) in 1837 (16:1 ratio). In 1862, prompted by the Civil war, paper currency was released with no monetary value. In 1878, the link between precious metals and the paper dollar was reinstated.
Now there is also the barter system, which is the system I believe is best. What's the barter system, well let me see if I can explain. you have something gadget I need and as usual, I'm broke. So how,do I convince you to provide me with whatever it is. Now I got a load of widgets that you could use. You tell me that my widgets are of poor quality and you will need a 5 to 1 swap widgets for gadgets. I explain what a wonderful quality widget I have and it is so unfortunate that your gadgets aren't quite up to snuff. You believe that you should receive 3 to 1 swap gadgets for widgets.
Now I never truly understood bonds until recently when I was studying the history of where our currency came from.
In 1861 Congress authorized the Treasury Department to borrow from, UNITED STATES CITIZENS, (Keep this in mind, it's important for my later discussion) $50 million dollars in demand notes . A demand note is an instrument by which the bearer can demand payment for the note in presious metal or coins. You see, while you base your currency on a precious metal, you should only have so much in circulation. This preserves the value of the currency.
I'll try and explain: In terms I understand...
You have 100 troy ounces of gold at $20.00 a troy ounce. Now you want to mint 2000 gold coins. Divide the 2000 required coins into 100 troy ounces and you get each coin's content is 0.05 of a Troy ounce of gold per coin. (0.05 x $20.00 is $1.00) So the assumed worth is 0.05 Troy ounce of gold. Now you have a fixed value of that coin. (Until you get to international trading, but that's in a later episode! ;->)That did not fare well when all of the notes came due or were demanded at the same time. The demand was suspended until a solution could be forth coming.
In February of 1862, Congress passed the the Legal Tender Act establishing paper money as a currency of the United States of America. Later that year, several Supreme Court cases validated the legitimacy of paper currency. So with very few changes, we have the currency of today, with one MAJOR exception.
The base of OUR currency is no longer gold or silver, it's called the petrodollar and it is the most harmful legislation to come out of our country in many years. Bottom line is, you want to buy oil; you can only use United States currency. You can thank President Nixon for that. So any country that want to work with us, great, if not, Venezuela is what we will do to you.
Also attributed to Nixon is the period of runaway inflation. The very moment that Nixon signed the order removing the dollar from the gold standard, the value of the dollar dropped dramatically causing the worse cycle of hyper-inflation in American history. That moved, literally, everything out f purchasing power of the normal, everyday, run of the mill, hard working American laborer. Now a car that use to cost $3000.00 off the showroom floor, cost $10,000.00. A home, my parents first one bedroom home was $8000.00 and that was expensive for back then. A HOUSE today, I doubt you will find many homes anymore, $250,000.00 and up!! Everything of necessity was suddenly out of reach without getting a bank loan. An economy built on debt was born.
Oh did I mention, salaries never kept up with inflation by design.....
So who did this to US???
So there are a great number of outside pressures that effect the value of your currency. The amount of gold you have in circulation, the amount of gold in circulation and exchange rate.
Now when something disturbs the delicate dance done by the supply and demand model, you get an economic downturn. Usually, to benefit the wealthiest of our species.
The Great Depression was the worst economic downturn in the history of the industrialized world. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Notice how they use the neutral tone of "the worst economic downturn", no the worst bank rip off in the History of the United States! This was not the first of the economic downturns America suffered. There had been 47 to date. Several I consider as nothing less than income adjustment of the working class. All of these were caused by deregulation of the stock market. I AM NOT A CAPITALIST. I'm actually a technocrat, I believe if left alone, technology can and will transform our world. In the meantime, we have to fight back against the corporate entities that strive to enslave us.
If you don't remember the great depression Capitalism saved by two socialist political parties and one communist political party. Roosevelt warned to help the masses or face riots in every major city in America and the masses would strip capitalist of everything they owned. The wealthiest would face the masses (French revolution) Created Social Security Unemployment Public works Paid by the wealthiest Americans An organized effort to strip away the New Deal started it earnest with Ronald Reagan Police being militarized to control the unemployed masses Our owners will require repayment of debt that they accumulated They will attempt to move on to the "Emerging Markets (Africa) We will remain with no health care, no education, no jobs, no food, water, shelter... We will be born, live, work, and die at the leisure of the Corporate Owners...
The The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act. A series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises. Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of the Federal Reserve System. The Federal Reserve System had three simple objectives for the monetary policy of the United States. 1). full employment. 2). keep prices from varying wildly. 3). to keep long term interest rates within reasonable or proper limits. (FAILED)
I will explain in terms I understand.
The Federal Reserve was to assist in the flow of capital between the government that owns it and the corporations that need it. If things got out of hand, the reserve had the power to squeeze the money flow to slow down things. It was interest rates. If inflation began to increase, raise interest rates. If it began to slow, lower interest rates. THAT IS THE MOST ILLOGICAL THING I'VE EVER HEARD!!! The way it should be done, is through taxes. You need more jobs, raise taxes and give incentives to those companies that expanded and hired. When the corporate tax rate was around a true 90%, we did the impossible. The Federal Reserve is now run by the Rothschild banking cartel. The banks own us. We need to either dump the reserver or surrender ourselves and our posterity to financial slavery.
Let me see if I can explain what I've learned lately. (This is in regards to your stock)
So what does this all have to do with the stock market??
The world banks will not be able to maintain the demands made for corporate profitability for much longer. Corporate profitability has already shown a weakness even thought everyone believes that the rise in stock market value is a health measurement. The market CAN NOT SUSTAIN ITSELF without some adjustment in how things are going. The biggest adjustment will come when they try once again to move profits up and debt down, like Obama did at the beginning of his first year. I know it's a lot to absorb, but one economist put it this way, we currently are experiencing an EVERYTHING bubble, meaning when this one burst, it will make the great depression look like a cake walk. It is not if, it is when.