- Politics and Social Issues
Are You Smart Enough to Understand Simple Math? - Exactly Why the USA will Collapse Soon
Why Taxing the Rich is Nothing More than Political Theatre and a Mathematically Impossible way to Solve the National Debt.
I am going to explain the problem of the National Debt in very simple terms anyone can understand. No Economics Degree Required. And this simplicity doesn’t even take into account the Personal Debt or State and Local Debt. California is claiming to be $16 Billion in the hole just this year!
First I want you to understand You are Being Lied to by the Federal Government Every Single DAY! Before I get started on some very simple principals (So simple that even the mathematically challenged can understand easily) I’d like to point out an article today about counterfeit Chinese Parts being used in US Military planes. China is building US Military Equipment and we are supposed to believe they are our enemy? Has there ever been a better time to expose the FRAUD that is the US Military Industrial Complex? China has the 2nd largest expenditure on Military at $100 Billion. The United States budgets for $700 Billion… a full 7x more than China who is NOT our Enemy. So who exactly are we going to go to war with that justifies this expense? Please name one country that we should be worried about? This is why the United States Government had to create “Terrorists”. So they could keep feeding the lie to the people that we need to spend $700 Billion a year on the military. You don’t think we could defend the United States on a paltry $100 Billion a year or less like EVERY OTHER COUNTRY ON THE PLANET?
Why the Economy is Going to Collapse and the US Dollar will Be Abolished
As of right now as I write this article the US National debt is $15.7 Trillion according to US Debt Clock dot org. Go see for yourself.
Here is what $15.7 Trillion looks like as a number:
$15,737,847,600,000 (I used the current number off the site)
There are approximately 320 Million Citizens
Here is what 320 Million looks like
What happens when we divide the Debt by the Number of Citizens?
15,737,847,600,000/320,000,000 = $49,180.77 debt per person
So the Debt Per Citizen is currently just over $49,000 per every man woman and child.
Now lets have some real fun and Stick it to the “Rich”.
If you believe numbers posted on Wikipedia (via Forbes Magazine) there are 412 billionaires in the United States of America. (Source: http://en.wikipedia.org/wiki/List_of_countries_by_the_number_of_US_dollar_billionaires). These Billionaires have a combined Wealth of $4.6 Trillion. Now here is where it gets “Fun”. The United States Government will spend $6.3 Trillion this year! (Source: http://www.usgovernmentdebt.us/total).
Follow along with me now… $6.3 Trillion - $4.6 Trillion = $1.7 Trillion. So lets not talk about Taxing these Billionaires… lets take every last bit of wealth they have an liquidate it to pay off spending. See the problem yet? They don’t have enough money to even cover this year! Then what are you going to do? You are understanding the “Simple Math” to this point I’m sure, but it gets even easier… follow along. There are not enough "Rich" Billionaires to pay off even a years spending if we took everything they have not just raised their taxes!
The collapse of the dollar is 100% mathematically inevitable. When the dollar collapses, it will be by far the single biggest event in the entire human history. Everything will change in every town across the globe. And yet most people have not even begun to think about it, much less prepare for it.
What is Money?
Since the inception of the Federal Reserve Act of 1913 and Fractional Reserve Banking ALL MONEY IS DEBT. Excepting for Coin which is not loaned into existence MONEY IS DEBT.
Here is how it works in a simple analogy:
The US Government needs/wants more money so they either borrow it from financial markets/other countries (Debt) or ask the Treasury to Create more money by creating more Treasury Bonds. The Treasury Bonds are then purchased by the Federal Reserve Bank (Private Bankers) at a discount off the face value (Interest). The Federal Reserve then does a few mighty clicks on their keyboards and magically money is created. And that money has interest due!
In even simpler terms….
Lets say you need a $100 to buy porn, cigarettes, and pay your drug dealer so he doesn’t beat you into oblivion. Or maybe you like most people are just a little short this month and need to feed your family. Either way the principal is the same.
You get someone to agree to loan you the $100 (Federal Reserve). In exchange for the loan you agree to pay interest (Lets say 5%). So at some point later in time you owe $105 (simple interest the time doesn’t matter in this case). So you got your $100 but you have to pay back the $100 + $5 interest. Where does that $5 come from? It doesn’t exist! You don’t’ have it. So how do you get it? Well if you are the Federal Reserve you simply create it at a later date! You make it out of nothing. That $5 doesn't exist (Sorry no you can't steal it from someone else or borrow it as that would not solve the problem of the newly created $5 debt... come on now, put on your thinking cap!).
This cycle of creating money and then having to create more money to pay off the debt is why the system is broken. It’s why it’s mathematically impossible to pay off the National Debt. Because the MONEY DOESN’T EXIST! YOU HAVE TO CREATE MORE DEBT TO COVER THE EXISTING DEBT!
Can you write a Check for $49,000 and send it off to Uncle Sam? Can you get everyone else to do that? No you can’t... because you don't have it! And if you think there are those that do just reference the Billionaire Argument above.
Sure we can talk about “Servicing the Debt”… making perpetual payments that are Interest Only… but even the Interest on the Debt is out of reach, because the system relies on debt on top of debt, which is not infinitely sustainable.
So what is the Solution to the National Debt?
People want to make everything so complex. The Solution is simple. The US Dollar has got to go, The Federal Reserve has got to go, and Fractional Reserve Banking has got to go.
It doesn't matter what you think about "That could never happen"... because it's already in motion. The inept Politicians are doing nothing to deal with the problem. Raising the debt ceiling... seriously... that's hilarious. That's like saying, "hey my cup is leaking". And then offering this solution: Pour in more water!
Once the Dollar, Fed, and Fractional Reserve Banking collapse a new currency can be issued (It will still have to be created out of nothing), but it can have no interest attached to it. The currency has to be backed by something even if it is only perception. The “Growth” of the currency must be controlled to reflect a 1:1 ratio with real population and production growth. The currency must be controlled not by a select group of Private Bankers, but by the People.
Until this happens you can expect things to get worse, much worse, and they are.
Inflation is NOT Higher Prices
Inflation is a symptom of an expanding money supply. Inflation is the devaluation of the existing dollar by introducing more dollars into a pool of money without adding any value to the dollars being issued. Higher prices are the result of inflation.
Here is a very simple example of Inflation
You have a tribe of 100 people. Each person has $10. So there is a total of $1,000 in that Tribe’s Economy. They decide to set prices based on the $1,000 available pool of money. Everything is great until 5 years down the road the Tribe Leaders decide to go to war with another tribe. But they do not have enough money to buy the equipment they need. So they decide to issue another $1,000. Now they can go to war.
Here is the problem they have just created INFLATION. There are now $2,000 to trade making the original $1,000 worth half of what it used to be worth. And the people of the tribe realize there is now more money so they raise their prices (This is how inflation happens).
Last year the Federal Reserve Bank dumped $7 Trillion of their FIAT Money into the World Banks… and you wonder why Groceries are going up?
Money is just Debt. And what matters is who you as a people, a country, a nation let control the supply of debt. When you let a select few Private Bankers control the money supply you get super rich on one end, hardworking masses enslaved to those super rich in the middle, and MASSIVE SUFFERING by everyone on the other end who has no access to the money supply.
It’s great to be human right?
All of this CAN BE FIXED. But it is NOT going to be fixed because the evil people who are living like Royalty off of your labor do not want to ever have to work for a living.