There Is No National Debt Unless You Want ItSubmitted by emalvini on Thu, 10/25/2012 - 12:52
There Is No National Debt Unless You Want It
Posted on October 25, 2012
The US federal debt is 16 trillion dollars – 20 trillion if you add in state and local government debts – but it could just as easily be zero dollars if we had the monetary system Benjamin Franklin described to the people of London in the 1760s. Englishmen could not understand why the American colonies had no poor houses and unemployed. He explained that if a colony needed to build a bridge or to fight a colonial war against the French they issued money which was retired from circulation as people paid taxes. The New England colonies did print too much money to support of England’s wars against the French in Canada.
The important point is that there was no interest paid and no debt issued. Contrast that to the Federal Reserve which churns out fraudulent and fictional debt by the trillions. The interest on the federal debt is over 500 billion dollars a year. If Ben Bernanke were not printing money to buy bonds, the interest rate would have to at least equal the inflation rate of 10% which would give us an annual bill of two trillion dollars.