Tuesday, August 2, 2011

Armadebton: The Case For Hitting the Debt Reset Button

Reset the debt clock to zero
AFP File image
Eric Blair
Activist Post

Donald Trump tells a story about the Savings and Loan crash in the late 1980s.  He was complaining to his young daughter at the time about how devastating the real estate plunge was for them. She didn't understand why he was crying poor when they lived such a lavish lifestyle. The Donald pointed to a bum on the park bench and said, "You see that guy over there? He is billions of dollars wealthier than we are."

He was referring to the debt he owed to banks. On paper he was worse than broke, so he was actually poor compared to the penniless squatter in the park. But, in reality, he was still fabulously wealthy, as the debt was just an arbitrary number, and he still slept in a penthouse within a building he owned, not a park bench. And, of course, the banks had to work with Trump because he was too big to let fail.

This story is relevant to the current debt "crisis" facing the United States. Although many believe the national debt to be real, it is also simply a number in a ledger. First, consider that about 12%, or $1.7 trillion, of the overall debt is owed directly to the Federal Reserve. Another $2.6 trillion is owed to Social Security.  Furthermore, other large private banks, including foreign banks, own a huge chunk of debt as well, most of it bought with the $16 trillion created from nothing and given to banks as bailouts. The amount owed to China pales in comparison.  The scheme guarantees an income stream for the banks who got virtually free money backed by the U.S. taxpayer to invest in higher-interest bonds backed by the U.S. taxpayer.


Next, the money never existed in the first place until it was created in the ledger. It was lent into existence in the moment of need.  It started off as fiction and remains fiction. Since the banks never had the money it lent in the first place, they're either collecting interest or seizing assets due to default from funny money.  It's not difficult to see how the banks will end up owning everything if this scheme keeps up for much longer.

Finally, the American people don't owe this money, just like the people of Iceland or Greece don't owe their nations' debts to a shadowy banking cartel. They did not sign a contract to borrow the money. They did not mismanage the funds, or borrow more money to paper over private banking losses. They did not demand wars with any of the victims of the government's imperial conquest. They did not demand the PATRIOT Act and resulting behemoth surveillance-industrial complex. The taxpayer is not responsible for this debt as Stefan Molyneux explains below:



Yet, the politicians tell the same story Trump told: we're worse than broke.  It's a crisis, economic Armadebton.  America's credit rating is at stake.  Soldiers and seniors won't get paid if we don't extract more taxes and cut benefits.  All while they go to bed in the penthouse.

The real wealth of America has nothing to do with a phony number on the ledger.  Some great wealth lies in the infrastructure -- water systems, roads, electric grids, universities, buildings, farms etc.  Some wealth lies in our capacity to make war.  But America's greatest riches are its innovative people; each brought up to believe they can accomplish anything they put their mind to.  This is precisely the reason Trump was not actually broke no matter what he owed to banks -- because he had the ability to be creative, and the capacity to accomplish big things.

If America defaulted and all debt was reset to zero, it would still be the wealthiest nation on Earth for the reasons above. The bankers argue that if the U.S. defaulted or lost its credit rating, no one would lend it money. That's laughable. The entire world depends on the ebb and flow of American business, and it always will. Starting over at zero would likely cause a surge of new capital.

Therefore, I propose to the banks a complete write-off of the national debt in exchange for your survival.  In other words, the American people will probably forgive your crimes and the bailouts, if the banks forgive the debt -- even-steven. Should the banks not accept this deal, they and their political cohorts will eventually meet their demise and lose everything.  And unlike the American people, they have not been able to prove that they can create anything of true worth.
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8 comments:

Scott Lazarowitz said...

I agree with what you suggest should be done, but with all that end the Federal Reserve System and its banking cartel monopoly, and allow for competing currencies and free banking.

It would also be helpful to end all government confiscations of private wealth and property, end government-imposed serfdom of the individual, and decentralize (i.e. have independent and sovereign states with no federal government).

Anonymous said...

What a fantastic article and video.

A ray of hope in the doom and gloom world imposed upon all citizens of the globe by the greedy psychopaths who have been in power for entirely far too many decades.

Thank you so much. This needs to go worldwide!
jan

Anonymous said...

The REAL Revolution
http://landdestroyer.blogspot.com/2011/02/real-revolution.html

Anonymous said...

I believe that the only way we can defeat the NWO in this country is for all of us to agree to not pay income taxes.

Next is for every state to secede from the union. They can sit in Washington trying to figure out who they will steal from next.

They don't have enough FEMA camps to house 350 million citizens but there would be plenty of room for those crooks to live out their lives quite comfortably.

Babs said...

I been saying do this all along and to move to a resource based economy due to Technological unemployment.

Anonymous said...

Some of the earliest members (even the founder)
of the Society of Jesus (or, the Jesuits) were MARRANO 'JEWS', in Spain.

Just type in 'marrano jews jewsuits' in BING - and see what you get.
http://thisiszionism.blogspot.com/2010/05/jewish-jesuits.html

Also, the guy who wrote VATICAN ASSASSINS, is VP of an ISRAELI-affiliated Diamond Co.
http://www.conspiracyworld.com/phelps_jesuit_expert.htm

There's the 'inside' deal, on how the Vatican ties into what is predominantly a 'Zionist'
NWO. (My take on all of this, is that the Central Banker 'Elite' Families, Oil Families,
Weapons Manufacturers, and others - use 'Zionism' to get street-level 'Jews' on board
with their NWO. However, it's pretty clear, that not all (street-level) 'Jews' are on board.
http://zionism-israel.com/his/jewish_anti_zionism.htm

If everyone could see the entire picture, even as I now see it - the Central Bankers, and
other 'elites' would be totally exposed, for what they really are - CRIMINALS/MURDERERS. 300 million people died, under Communism, in both Russia, and China - and the Rothschilds and
Rockefellers, and others, funded it - FROM WALL ST. and Europe.

Steve said...

What about moral hazard :)

Anonymous said...

EXACTLY !


Tptb need us, NOT the other way around.
They've been pounding in our heads, the fear of an economic crash, but, frankly, what have we got to lose then?

We're already suffering terribly. Homeless, joblessness because tptb have sent them Abroad, tent cities, floods, cop abusing and even killing citizens with impunity, wars on everything and everybody....our greatest treasures, our young kid soldiers leaving us, they suffering and dying, parents also, and even dying inside...outright thievery by our own Feds and the Banksters /Corporations.

And if at the moment, you're holding on, who knows tomorrow? We live with terrible uncertainty.

We're all suffering, but it shouldn't be like that.

We're taught in schools /shown on tv, how bad the Great Depression was, so that we panic and fear it. Hollywood doing it as well, for everything they produced was because they were hand-in-glove with the Feds, to scare the "peasants."

But what was shown us, was only a few people that failed, only a few WEALTHY that killed themselves.

However, the VAST majority of the population
did well, no luxurious, but everyone pulled together, entire communities, and helped each other, cooperated in food production and SHARED. Families came together, helped their youth and took care of their elders. Everything was homemade.

In this cruel, deliberately manufactured 'failure" of the banks - everybody got through.

Now, tptb threaten another Great Depression, because the generations that witnessed it, have died and cannot tell us how it really was.

Now, we, THE People, may go back to the days of "The Little House on the Prairie"...at first. But we, will, certainly, we will survive, and even flourish....because we're NOT going to simply sit there and do nothing.

We're going to fix the earth for crops, plant our food, make bricks for houses or repair the old ones, and take care of each other, and go on from there!

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