There are many games of expression concerning the explanation of a countries debt ranging from double speak, or just plain talking about two difference methods of accounting. Then least we not forget my personal fav.... omission. . Examples often include Social Security payments due into the future, then you get a bigger number for shock value. The number method I presented was more in line with how we look at our personal balance sheets. Overall I agree that there is a difference in actual line item numbers. For instance the CNBC quotes $659 billion and the Tax Foundation page, source of my data states $711 billion. Another slight of hand that is played is using the "budget" term. I remember how Clinton had a 'budget reserve" but the check book was still in red ink!.
Since the Fed now buys everyone's debt it is offered, there is no longer a reason to worry about anything but inflation, which will be accelerating here just as it did in the Wiemar Republic.
Food for thought....there is a rub. Federal Reserve is owned privately. So what happens when the owners decide they have acquired enough debt to foreclose? The ugly secret of the 1913 Federal Reserve Act is in the interest. Say Treasury borrows $100. thus now owes Fed Reserve $106 (interest may vary). Is there enough cash to pay back $106 with only the $100 borrowed? The dirty secret is there is never enough to pay the debt both principal and interest. Maybe that's why all the elected leaders do is spend? Historically when President Kennedy for instance, and those before him, issued "government money" outside of the "interest scheme" bad things happened!
The Fed could only foreclose on themselves since they don't hold collateral on the debt they issue. Federal Reserve Notes and treasury paper is printed by the Bureau of Engraving and Printing. FRNs are sold to the Fed at the cost of production and lent back to the government at face value plus interest. Treasury paper is sold to the Fed in return for FRNs to circulate and electronic debt to fund the government. President Kennedy issued Silver Certificates on his own authority, not the government's.
But what is "Treasury paper" if but not interest bearing bonds?
Were not the Kennedy Silver Certificates issued, a non interest bearing instruments that transfers power from the Federal Reserve and back the United States Treasury, who for the most part of it's history issued the currency of the nation interest free until 1913 and the Federal Reserve Act.
The "holding of collateral" rebuttal is off base, as my original point was not to argue per se. Some insightful reading on the subject of "government issued currency" vs a "private group" is as follows.
Barbara Villers or A History of Monetary Crimes by Alexander Del Mar, M.E.
WEB OF DEBT by ELLEN HODGSON BROWN, J.D.
Babylons Banksters & Financial Vipers of Venice by Joseph P. Farrell
In closing I must ask about the differentiation between the President and "the governments" authority. How is does that division other than stated in the U. S. Constitution?
So in the end as of today you and I both owe at least $100,247 as a citizen and $259,103 as a tax payer, shouldn't we be more accusative with those who claim to spend on "our behalf"?
However, for hyperinflation is to occurr, the velocity of money must increase and become rapid, and it's not there yet. Nobody can figure out why... But we do have serious deflationary pressures on the system, and that's impairing the increase in velocity. It's a mess.
Not discounting in anyway the above material, however never stated simply in the media is:
U S Government 2023 Expense
Soc. Sec $1,300,000,000,000.00
Medicare $846,000,000,000.00
Medicad $616,000,000,000.00
Interest on debt $711,000,000,000.00
Military Spending (Defense!) $727,000,000,000.00
Total Outgo $4,200,000,000,000.00
Tax Collections $4,400,000,000,000.00
Solvency $200,000,000,000.00
(number sourcehttps://taxfoundation.org/blog/federal-budget-deficit-2023/)
Remember this when your read headlines like https://www.cnn.com/2023/10/20/politics/biden-administration-israel-ukraine-congress-funding/index.html
Of course taxes could be raised!
If the US is 200 billion in the black, ie solvency of 200 Billion, then why is there atleast 1.7 Trillion dollar deficit?
Something doesn't add up; according to this article, outlays are (outgo) 6.1 Trillion. https://www.cnbc.com/2023/10/20/us-wraps-up-fiscal-year-with-a-budget-deficit-near-1point7-trillion.html
There are many games of expression concerning the explanation of a countries debt ranging from double speak, or just plain talking about two difference methods of accounting. Then least we not forget my personal fav.... omission. . Examples often include Social Security payments due into the future, then you get a bigger number for shock value. The number method I presented was more in line with how we look at our personal balance sheets. Overall I agree that there is a difference in actual line item numbers. For instance the CNBC quotes $659 billion and the Tax Foundation page, source of my data states $711 billion. Another slight of hand that is played is using the "budget" term. I remember how Clinton had a 'budget reserve" but the check book was still in red ink!.
Since the Fed now buys everyone's debt it is offered, there is no longer a reason to worry about anything but inflation, which will be accelerating here just as it did in the Wiemar Republic.
Food for thought....there is a rub. Federal Reserve is owned privately. So what happens when the owners decide they have acquired enough debt to foreclose? The ugly secret of the 1913 Federal Reserve Act is in the interest. Say Treasury borrows $100. thus now owes Fed Reserve $106 (interest may vary). Is there enough cash to pay back $106 with only the $100 borrowed? The dirty secret is there is never enough to pay the debt both principal and interest. Maybe that's why all the elected leaders do is spend? Historically when President Kennedy for instance, and those before him, issued "government money" outside of the "interest scheme" bad things happened!
The Fed could only foreclose on themselves since they don't hold collateral on the debt they issue. Federal Reserve Notes and treasury paper is printed by the Bureau of Engraving and Printing. FRNs are sold to the Fed at the cost of production and lent back to the government at face value plus interest. Treasury paper is sold to the Fed in return for FRNs to circulate and electronic debt to fund the government. President Kennedy issued Silver Certificates on his own authority, not the government's.
But what is "Treasury paper" if but not interest bearing bonds?
Were not the Kennedy Silver Certificates issued, a non interest bearing instruments that transfers power from the Federal Reserve and back the United States Treasury, who for the most part of it's history issued the currency of the nation interest free until 1913 and the Federal Reserve Act.
The "holding of collateral" rebuttal is off base, as my original point was not to argue per se. Some insightful reading on the subject of "government issued currency" vs a "private group" is as follows.
Barbara Villers or A History of Monetary Crimes by Alexander Del Mar, M.E.
WEB OF DEBT by ELLEN HODGSON BROWN, J.D.
Babylons Banksters & Financial Vipers of Venice by Joseph P. Farrell
In closing I must ask about the differentiation between the President and "the governments" authority. How is does that division other than stated in the U. S. Constitution?
So in the end as of today you and I both owe at least $100,247 as a citizen and $259,103 as a tax payer, shouldn't we be more accusative with those who claim to spend on "our behalf"?
Yes and no, depending on which question you want answered first.
No need. I apologize to Elizabeth Nickson as I took this beyond the scope of her post.
However, for hyperinflation is to occurr, the velocity of money must increase and become rapid, and it's not there yet. Nobody can figure out why... But we do have serious deflationary pressures on the system, and that's impairing the increase in velocity. It's a mess.
I doesn't matter what the velocity is if the goal is a bridge abutment.