Sunday, September 9, 2012

Why America Is Bankrupt

Face Reality
Isn't it time to STOP listening to the politicians in Washington (including President Obama) and start facing the TRUTH? America isn't just broke, it's bankrupt. A definition for "bankrupt" is: "A person or organization unable to pay its debts. Insolvent, failed, ruined, in debt, owing money, in the red, in arrears, in receivership; bust, belly up, broke, cash-strapped, flat broke."

We are there America. We have to borrow $0.40 for every dollar we spend as a government. Soon our interest alone will cripple our debt because it compounds every day. Remember that governments don't earn any income. The Government SPENDS money. That's what they do. They also BORROW money when they don't have enough of it. They collect it from YOU the taxpayer and YOU the businessman.

How We Got Here
This situation used to be fine when the dollar was backed-up with gold and silver. However, politicians figured-out that they could spend more if they could borrow unlimited amounts of money. However the Gold Standard prevented politicians from over spending because everything had to be backed by gold/silver.

The first thing they did was to create a National Bank (the Federal Reserve [the FED]). This was a privately owned bank. We do NOT know who owns it and they are unaccountable to American citizens. Go Figure that one!

Then politicians gave the FED full power to "coin" money. That meant "COIN" not print! Gold and silver coins became the medium of exchange in transactions. Soon after Congress changed the law to enable the FED to print money. So they could print "money" that was backed by gold and silver.  To compound matters, in the 1970s President Nixon dropped the Gold Standard completely making it even easier for politicians to borrow tremendous amounts of money. From that point on, the FED could print all the paper money they wanted backed by nothing. This is called FIAT CURRENCY. Fiat currency is : "Fiat money is money that derives its value from government regulation or law. The term fiat currency is also used when the fiat money is used as the main currency of the country. The term derives from the Latin fiat ("let it be done", "it shall be")." Fiat currency is WORTHLESS!

During this time politicians allowed the US Treasury to sell bonds (called "US Treasuries") in order to generate more money for the government to spend. This is dangerous because they then followed-up that move by allowing the FED to buy US Treasuries. (This is referred to as monitizing the debt). What these actions did is to create a GIANT GOVERNMENT PONZIE scheme and it has been operating since 1913 when Congress first created the Federal Reserve Bank.

This scheme allows the FED to buy interest bearing loans (US Treasuries) that the government has to pay. Remember the FED can pay for these bonds by printing worthless paper money backed by NOTHING but a promise. The government pays using YOUR tax dollars collected plus interest.

When the FED prints money, they are devaluing YOUR dollars purchasing power. This is why we have lost over 39% of our personal savings in the time Obama has been on office. The FED keeps printing worthless money raising prices on everything. The STIMULUS was nothing more that worthless paper money that the FED printed out of nowhere! Look what it has done to our economy. The government's interaction has created more instability and more unemployment. They merely propped-up a sagging economy with another economic "bubble." This will top the Great Depression when it breaks, and that's still ahead.

Action To Take
Tell friends and like-minded people that our national debt is destroying America. Elect only politicians who are committed to reduce government spending by cutting all federal spending and entitlement programs. We cannot afford it! Vote Obama out-of-office because he's borrowing and spending like a fool and is accelerating our demise more quickly.

Also, we need to return to the Gold Standard and to abolish the Federal Reserve Bank and let Congress have their old power to coin money once again.

If we do not do these things, America will become a new country with much lower standards of living and much more poverty.

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