Archive for the National Debt Category

More Deficits, More Debt

Posted in Debt Collapse, Dollar, Monetary Policy, National Debt on December 20, 2011 by JT

December 19, 2011 – In the first two months of the current fiscal
year that began on October 1st, the US national debt has grown $320
billion. That is $21 billion more than the same 2-month period last
year, which illustrates that the growth of the national debt continues
to accelerate. The reason of course is the federal government’s huge
operating deficit, which is not getting any smaller. This point is
illustrated in the following chart.

Hyperinflation is always the outcome of unchecked government
spending. The spending leads to ever greater deficits, which requires
the government to borrow ever greater amounts of money. Eventually a
point is reached when the government needs to borrow more money than
lenders have the capacity – or willingness – to lend. Thereafter the
government can take either of two alternative paths.

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via More Deficits, More Debt.

Paper Banknotes and the Indebting of Nations

Posted in Debt Collapse, Fiat Money, Monetary Policy, National Debt on November 22, 2011 by JT

On April 3, 1024, “the imperial Sung Dynasty began to print and circulate chiao-tzu notes [paper money] in the province of Szechwan”.

p. 11 Ralph Foster, Fiat Paper Money: the History and Evolution of Our Currency, 2nd ed., 2008

In China, paper money was a monetary form of ‘Hamburger Helper’, an addition to the royal treasury that allowed Chinese dynasties to stretch their budgets by allowing them to spend what they didn’t have.

In the West, paper money had a different purpose. There, the invention of paper money would also allow governments to spend more than they possessed; but, in the West, governments would have to borrow their own money from bankers.

When money is issued as debt, everyone becomes a debtor


Paper money and fractional monetary reserves appeared first in China in 1024 and, although China’s monetary advances were noted by Jewish traders, it would be the Scots who 600 years later would transform China’s paper money into a credit-based conveyer of debt in the West.

Note: It’s no coincidence that today’s largest bank in terms of market value and profits is HSBC, incorporated by Sir Thomas Sutherland in 1865. Sutherland was a Scot.

In 1694, a Scottish banker, William Patterson, convinced England’s King William III to establish a central bank that would issue debt-based paper money alongside gold and silver coins. The king agreed to do so in return for loans to pay his war debts and more loans to fight more wars.

The Scots’ bogus paper banknotes—marginally backed by gold—would eventually replace gold as money throughout the world, proving again the ancient dictum, bad money drives out good.

Invented in China and transformed by the Scots, it would be the Jews, however, who would leverage paper money and credit and debt into untold wealth and power. William Patterson’s combination of paper money and money lending would catapult the Jews from societal outcasts to rulers of the financial world; but because of deeply ingrained anti-Semitic attitudes in the West, it would take almost a century for this to occur.

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via Paper Banknotes and the Indebting of Nations.


Posted in Economy, Monetary Policy, National Debt, Silver on September 24, 2011 by JT

Investment Rarities Incorporated Best of Jim Cook.

The Fed Disappointed… The Great Collapse is Here

Posted in Monetary Policy, National Debt on September 22, 2011 by JT

The Fed Disappointed… The Great Collapse is Here | ZeroHedge.

Fed Target Must be 5% Inflation

Posted in Federal Reserve, Inflation, Monetary Policy, National Debt on September 21, 2011 by JT

Fed Target Must be 5% Inflation.

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