The National Debt is the Money Supply

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DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
The National Debt is the Money Supply

National Bank Act of 1863

"From this point on the entire US money supply would be created out of debt by bankers buying US government bonds and issuing them from reserves for bank notes...In numerous years following the [Civil] war, the Federal Government ran a heavy surplus. It could not (however) pay off its debt, retire its securities, because to do so meant there would be no bonds to back the national bank notes. To pay off the debt was to destroy the money supply.".  - John Kenneth Galbraith

After the National Bank Act of 1863 took effect, the international bank cartel made the national debt the basis of our money supply.  Lincoln won the Civil War but lost the nation's financial sovereignty.  Later, Secretary of the Treasury Salmon P. Chase said "My agency in promoting the passage of the National Banking Act was the greatest financial mistake in my life. It has built up a monopoly which affects every interest in the country."

Since that time, we have been a subservient financial client state of the international bank cartel.  Later, in 1913 their monopoly was consolidated formalized into the private hands of a small and secretive group under the Federal Reserve Act.  Every year, the government must go deeper in debt.  Look for Barry Soetoro to continue running up the national debt because if he doesn't, the economy will start to implode.

 

"Loans alone cannot sustain the money supply because they zero out when they get paid back.  In order to keep money in the system, some major player has to incur substantial debt that never gets paid back; and this role is played by the federal government."  - Ellen Brown, Web of Debt

The national debt is around $13.3 trillion dollars and the broad money supply measured as M3 is around $13.7 trillion.  Without the national debt, there wouldn't be an M3. All the talk about balanced budgets was a lot of bs.  Eventually we will not be able pay the interest on the exploding debt and the economy will collapse.

Larry

Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Re: The National Debt is the Money Supply

Not very many people know how or why Lincoln really died.

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: The National Debt is the Money Supply

Consider this...

A major problem we have is that the money supply is only temporary (created by debt and extinguished by debt repayment).  The national debt (around $13.3 trillion) is needed to provide the national money supply (M3 is around $13.7 trillion).

What if the money supply (M3) were created debt free?  Do you see where this is gong...?

Larry

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