This budget nonsense should come as no surprise to anyone who’s read my “What is Money” series.
Presently (July 2011), the United States counts itself -$14,000,000,000,000 (14 trillion) in the hole but when we include a few other little gems like social security, medicare, medicade, FNMA, FHLMC, AIG, GM, Chrysler +++ I’ve seen credible estimates for the debt well north of $75 trillion.
Meanwhile, over in Europe, Greece needs another bail-out. How many bail-outs it’s received already is anybody’s guess but I think it’s safe to say it’ll be needing another and another. Ireland, Portugal, Spain, Italy…bail-out, bail-out, and bail-out, again and again.
Since I’m on the subject of bail-outs permit me to correct a commonly held misconception. It’s not Greece, Ireland, Portugal, or soon to be Spain and Italy that are being bailed out with these new loans from the European Central Bank and International Monetary Fund, but rather it’s the banks that are in danger of being defaulted upon that are being bailed out! Simple: The new loans allow the debtor countries to continue making their debt payments to the banks and the liability for it falls upon the people, their children, and their children’s children. Forever. Truly, humanity can never be free under the present system.
I’m thoroughly disappointed with our leaders. Can’t they see what’s going on? These bailouts and this budget debate are all a load of crap and it won’t solve anything so long as the options continue to be framed in terms of taxing, spending and borrowing. It seems pretty obvious that the reason for our debt trouble is the debtmoney system itself and ultimately it’s going to take an overhaul of the monetary system to actually get at the root of the problem. Until then it’s all just political theater.
So what’s the solution? Local scrip? State issued currency? Competing free market currencies? I’m still convinced a large part of it would involve the retirement of debt based Federal Reserve Notes with an issuance of debt free United States Notes such as I outlined here.
For more insight into the history and nature of our current monetary system I invite to pop some popcorn, grab your favorite beverage, and take the time to check out this 45 minute video by Paul Grignon titled Money As Debt.