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Tuesday, March 27, 2012

What will happen if America failed to pay off its debt?

How would it be possible to pay off it's debt? The USA has no money of its own. All currency used in the USA belongs to the Federal Reserve Corporation who loans "fiat" money to the Federal government of the USA.
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The Treasury has bonds printed up selling them to people and other governments. When these bonds mature and are turned in the Treasury cannot pay off these bonds in most cases and must go to and borrow the funds from the Federal Reserve Corporation paying more interest.
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The Federal Reserve Corporation creates "fiat" money out of thin air. Because of "fiat" money and fractional banking there is no way America can ever pay off its debt ever! We have President Woodrow Wilson to thank for this when he signed the Federal Reserve Act, sneaked through congress during Christmas Recess of Congress, to repay debts owed to the banking cartels for his reelection. After signing Wilson commented, "I have ruined America with this signing!"
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Today there are 12 major banking cartels throughout the world. These cartels own all the currencies throughout the world shuffling these "fiat" currencies around for their own good and interests not those of the common people. This is only one tentacle of a multifaceted octopus controlling the world.

ADDITIONAL: A number of you have stated the national debt with figures way too low Attached here is a more accurate accounting:
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the US REAL federal debt is actually over US$99.2 trillion (as of May 2008). Who says so? The President of the Dallas Federal Reserve, Richard W. Fisher, in a May 2008 speech at the Commonwealth Club of California. Our descendants for the next century will not be able to pay this debt off. The Elite international bankers don't want it paid off, because they want the interest on this debt to keep flowing.

Though the Bush Administration’s official budget lists the national debt and deficit as being incredibly high, they are actually far worse than reported, according to Rep. Jim Cooper (D-TN). But don’t just take his word for it, even if Cooper is a Rhodes Scholar and Harvard Law graduate. The following figures appear in the official U.S. Financial Report, released by the Treasury Department:

* The true national debt is $49 trillion, not the $8.3 trillion Bush reported

o That’s $156,000 for every citizen, or $375,000 for every working American

o This figure has more than doubled in the past five years

o We paid $327 billion last year on interest alone

* The true 2005 deficit was $760 billion, not the $318.5 billion Bush reported

o This is 6.2% of the GDP, not 2.6%

* It’s all getting worse

What accounts for the huge discrepancy? Unlike businesses, the government uses “cash” instead of “accrual” accounting. This means that the government does not report future spending promises like Medicare and Social Security, or even future spending guarantees like veterans’ benefits and federal employee pensions.

“Cash accounting tells you what’s in your bank account. Accrual accounting tells you what’s in your bank account and what’s on your credit card statement,” Cooper told BuzzFlash in an interview. “Whether you’re promising to buy a road or something at Target, you need to know what you promised to buy. That should be a binding obligation of the government. We’ve made a world of promises to folks that we need to keep.”

But wait, there’s more! The U.S. Financial Report does not mention that if Medicare and Social Security are factored into the equation (which the Treasury Department did not), the true deficit was actually a whopping $3.3 trillion last year, over ten times more than Bush claims. And when Social Security projections are adjusted to reflect current life expectancies instead of the old 75-year mark, Cooper said the true national debt is “probably closer to $65 trillion.”

Jul. 7, 2007 Source: http://www.crooksandliars.com/2007/07/07…

Laurence J. Kotlikoff, in his October 2005 paper titled, “Is the U.S. Bankrupt?”, estimates that the US real debt, in 2005, was $65.9 trillion, and in order to pay this debt off our children and grandchildren will be paying a federal income tax at the rate of 63% to 80.6%. This means that in 2007 it could be in the $70 to $75 trillion range. http://www.4rie.com/index.html#anchor200…Scroll way down to "THE REAL UNITED STATES FEDERAL DEBT" You may find much of the other information interesting as well.

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