Here's an article describing what's going on in Greece is also going on in many places in the US.
http://www.cbsnews.com/8301-503983_162- … 03983.html
I think this is pretty accurate, personally. Debt was marketable and sellable, but we've overextended this idea, and still in many cases trying to do it.
In part, because of Reaganomics (but Jimmy Carter started something worse that Reagan tried to undo). But mostly because of many poor judgment decisions about the economy over the last century.
Debt is not capital and at some point people want to be repaid.
The interesting question is not how much debt is owed all over the world but why "Investors" continue to feed the machine. Will anyone who loans money to Greece actually be repaid?
California borrowed $8Billion from the Federal Government last month. Where they got the money to loan who knows. How will California repay the debt? California tax payers send their Federal Income Taxes off to Washington so they can borrow them back at interest.
The problem isn't production or unemployment... it's Banking Systems that create money from nothing... numbers on computer screens... money that is created and not earned... then loan that pretend money to people continually enslaving them to a system which only rewards those who control the system at the very top.
Just like in Greece, the problem here is the people that expect money from the government. That is why they are demonstrating and that is why we will have the same thing happen here when the U.S. government finally goes broke from too many social programs and politically expedient handouts.
Self restraint is the answer for individuals and the government, but will not happen until there is a huge calamity that cannot be fixed. The possible repercussions of continuing on the path we are on now are staggering, including anarchy, rioting, and even potentially civil military action.
I like to be optimistic, but if people is this country are not willing to suck it up and make the necessary sacrifices now, there may well be a very dismal future. If you study history at all, you can see that our time may be very well up. Most civilisations, empires, states have had a limited shelf life. Unless we recognize the danger and take steps to prevent a downfall, this may be on the horizon.
In fact, the total value of all gold held by the US to back up the dollar is approximately $284.6 billion, but the total amount of US dollars in circulation alone is $829 billion (http://www.newyorkfed.org/aboutthefed/f … fed01.html). This means that for every 10 dollars you have in your wallet right now, 7 of them have absolutely nothing to back up their value, except for public perception.
This doesn't even include the nearly 13 trillion dollar national debt of the US.
The best investment anyone can make right now is in themself - by learning new skills and new ways to live - concentrate on building relationships with your families and neighbours.
"California tax payers send their Federal Income Taxes off to Washington so they can borrow them back at interest."
You've captured the madness behind this system perfectly - thanks!
The Dollars isn't backed by Gold at all. The real question is where is the Gold that was once in Fort Knox and who ownes it now?
And the amount of paper currency is actually 3%. Our current money supply is numbers on computer screens, backed by nothing, and worth whatever people perceive it to be worth.
And it's all controlled by Secret Bankers. There is a proposal in the current financial reform bill for a "one time audit" of the Federal Reserve to see their role in the Bailout. The Fed has never been audited, and the chances of that occurring now are pretty slim. All they have to do is buy off the people that oppose them with the money they print.
Fort Knox Gold
Sources: http://moneywatch.bnet.com/economic-new … ox/385523/
Fractional Reserve Banking
United States Notes were redeemable in gold until 1933, when the United States abandoned the gold standard
http://www.ustreas.gov/education/faq/cu … nder.shtml
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