One Nation Under Debt With Endless Debt Slavery For All

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Debt is a “soft” form of slavery.  In America today, it is not legal to bind people up with chains and force them to work for you, but that doesn’t mean that there are not millions upon millions of slaves in this country.  When you borrow money, you willingly become a servant to the lender.  Sadly, there are millions of Americans that will spend the rest of their lives working to pay off their debts but they will never escape the endless debt slavery that they have gotten themselves into.  When you add up all forms of debt in the United States at this point, it comes to more than 54 trillion dollars.  That is more than $178,000 for every man, woman and child in America.  We truly are one nation under debt, and we have created the biggest debt bubble in the history of the planet.  Unfortunately, all debt bubbles eventually burst, and when this one bursts the consequences are going to be unlike anything ever seen before.


When most Americans think of the “U.S. debt problem”, they tend to only think of the U.S. national debt.  Well, that certainly is horrifying, but it is only a small part of the overall problem.

The chart posted below shows the growth of total debt in the United States over the last several decades.  Total credit market debt owed was less than 5 trillion dollars back in 1980, but now it is over 54 trillion dollars….

Our entire economy is now based on debt.  We are told that we have to go into debt for everything.

Just think about it.

Most young adults start their lives by going into huge amounts of student loan debt.  Young people are told that they won’t be able to get a good job without a college education, and most of them can’t get a college education without taking out huge loans.

Unfortunately, a college education just keeps getting more and more expensive.  At this point, college students in the United States are borrowing approximately about twice as much money as they did a decade ago after adjusting for inflation.

Sadly, about two-thirds of all college graduates leave school with student loan debt these days.  The average student loan debt burden at graduation is approximately $25,000.

So before they even start their lives, these young people are drowning in debt.  Recently, total student loan debt in the United States passed the one trillion dollar mark.

That is absolute insanity.

Okay, so once our young people graduate from college they need to get a car so that they can get to work (if they are fortunate enough to find a job).

In most cases, that is going to involve more debt.

In the United States today, approximately 70 percent of all auto purchases involve an auto loan.

In order to make car payments affordable in a world of stagnating paychecks, auto lenders just keep extending the length of auto loans.  Right now, the average length of an auto loan in America is close to 6 years.

And just like we saw with housing, a lot of these loans are being made to “subprime” borrowers.  Sadly, 45 percent of all auto loans are being made to subprime borrowers at this point.

That is certainly not going to end well.

Once young adults start working, they are encouraged to buy a home.

In the vast majority of cases, that is going to involve even more debt.

Homes certainly cost a whole lot more than they did in the old days, and most Americans really have to stretch to be able to afford the homes that they live in.

In fact, mortgage debt as a percentage of GDP has more than tripled since 1955.

That is not economic progress.

Many Americans may be living in beautiful homes, but the truth is that the bankers own a bigger share of our homes than ever before.

Only in the past few years has it gotten to the point where the bankers actually have more equity in our homes than we do.

This is unprecedented in American history.

Today, homeowners are only holding about 40 percent of all home equity.

Back in 1952, that figure was above 80 percent.

One nation under debt indeed.

Once our young adults have a home, they have to fill it up with stuff.

So that is where credit cards and other forms of consumer debt come in.

Overall, consumer debt in America has increased by a staggering 1700% since 1971.

Sadly, most Americans have been told about how poisonous credit card debt is and yet they continue to rack up huge amounts of it anyway.

Today, 46% of all Americans carry a credit card balance from month to month.

That isn’t very smart.

Overall, Americans are carrying a grand total of $798 billion in credit card debt, and all of that credit card debt is making the Wall Street bankers very, very wealthy.

Credit card debt is one of the worst forms of debt slavery, and yet millions upon millions of Americans cannot kick the habit.  In fact, one out of every seven Americans has at least 10 credit cards.

When will we all learn?

Debt does not build up the middle class.  Debt destroys the middle class.

Once Americans start getting older and their bodies start breaking down, medical debt starts becoming a problem.

One study found that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.

Even if you go out and get a “really good” health insurance policy, that still does not mean that you are going to be able to avoid medical debt.  According to the American Journal of Medicine, medical bills are a major factor in more than 60 percent of all personal bankruptcies in the United States.  Of the bankruptcies that were caused by medical bills, approximately 75 percent of them involved individuals that actually did have a health insurance policy.

So what is the lesson?

Don’t get sick.

You may not be able to afford it.

Government debt is also a major national crisis.

As I have written about previously, state and local governments all over the nation are on the verge of bankruptcy.  In the years ahead we are going to see unprecedented financial implosions all over the nation.

And the worst debt problem of all is the federal government debt problem.

Since Barack Obama took office, the U.S. national debt has increased by more than 5 trillion dollars, and it is rising at a rate of about 150 million dollars an hour.

During the Obama administration, the U.S. government has accumulated more debt than it did from the time that George Washington took office to the time that Bill Clinton took office.

That is really, really bad.

At this point, the United States has more government debt per capita than Greece, Portugal, Italy, Ireland or Spain.

So yes, we are in a massive amount of trouble and yet our politicians are wasting money on some of the most insane things you could possibly imagine.

For example, the federal government is actually spending money to determine how rats respond to jazz music when they are high on cocaine.

I am afraid that the history books are not going to be too kind to us.

We were the wealthiest nation in the history of the world, but that was not good enough for us.

We just kept borrowing and borrowing and borrowing and now we have destroyed our future.

How could we have been so stupid?

  • DaytoDay

    Michael, Have you seen the documentary “Inside Job”, narrated by Matt Damon, and if so, what are your thoughts on that film?

  • Nostradamus

    “How could we have been so stupid?”

    It is quite late to ask this question. Perhaps too late.

    – Gen. Rommel response to Hitler’s question of why it is necessary to fortify the Atlantic Wall, the Swiss Alps, and the entire eastern German border with all forces committed without reserve, against a 3-front simultaneous attack into the German homeland.

  • ScoutMotto

    Many believe this false notion that we “owe the debt to ourselves.” If this were true, we could simply forgive ourselves the debt. The federal government owes the private Federal Reserve, and various other governments, and they put the people on the hook for their bankruptcy. One of these days, the creditors are going to say enough.

  • mondobeyondo

    If you’ve ever played the board game “LIFE”, you know that at the very beginning, you have the option of going to college, or not going. If you choose the college option, you are immediately $100,000 in debt. That’s before getting married or buying a house or anything else. Right off the bat, you’re already behind the 8 ball.

    Nice way to start off life, huh?

    • LLB

      Only…nobody tells you this. You make straight A’s, right?? Clearly you are of superior intellect and YOU won’t have any problems in the job market. Ha…ha…ha.

      What we say to kids:


  • mondobeyondo

    “A house is a place where you keep your stuff, while you go out and get… more stuff.”

    — George Carlin

  • ME

    Many students use college loans for party time. There is no requirement that you “fill up” your home with new furniture. Good furniture can often be found at yard sales, etc. It may not “go with your decor”, but that is not a crisis. It is relatively easy (but sometimes expensive) to get out from under a car loan or lease. You just can’t always be driving an almost new car. umurikans want everything NOW! Who says we are entitled to everything our parents worked a lifetime for? Where I live, there are several decent universities within commuting distance. If my kids want “the college experience”, they will get it on their own dime. I am helping them with college just by providing room and board. Any tuition assistance will be in the form of paying actual university invoices. I am not going to be like my friend who gave his daughter money for college only to find out she had dropped out the previous year.

    I suspect that Americans will return to the practice of handing down homes from one generation th the next. The days of moving every time you are tired of the paint colors are gone.

    • Mr. G

      WRONG – Forgive me, but the IRS and other debt collectors are making off with many paid-for homes which should have been inherited. I’ve known many cases which went this way – very sad.

  • Chris

    Michael I think the worst aspect of this is not that the average person actually borrows money but that they spend years repaying money/credit that never actually existed until they took out the loan in the first place and the bank created it out of thin air. That is the most amazing scam ever, surely.

    • LLB


  • William

    The election of Ronnie Raygun brought the beginning of really stunning annual federal deficits. This lunacy has continued for 30 years. Clearly, this is what Americans want. Americans elect/reelect their Representatives to the US House, where all spending bills must originate. So, this is what Americans want. If you do not want any more of this lunacy, in Nov of 2012 VOTE against your local incumbent US Representative. Otherwise, sit down and SHUT UP!

    • LLB

      Yes, isn’t it interesting that this didn’t happen until we all embraced the notion of “trickle-down economics”?

  • guido

    We did this to ourselves. We were too damn greedy for our own good. If we had been better about not blowing up our credit cards and mortgaging our future, perhaps things wouldn’t be like they are today. In fact, had Americans been better about noticing their wages were largely flat or being inflated into nothing for several decades, perhaps they would have agitated when it might have mattered.

    Actually, when you look at it, consumer debt in the US is nothing. Take a look at the derivatives market. The global economy is roughly 70 trillion dollars, while the banks have created 220+ TRILLION dollars in imaginary paper. When this all comes due… Who even knows what will happen?

    Ever read FerFal’s blog? I think we’re on our way to Argentina. When that happens, I doubt many of us will be able to get medical care as we know it. I doubt anything will ever be the way we know it again. He described some of the rich dropping to middle class, most of the middle class dropping into mild poverty, and the poor dropping into absolutely grinding poverty. I think the modern credit system as we know it will be gone down the tubes, meaning commerce as we know it is screwed. And much of the control over the system will necessarily go, too. I imagine there will be extremely strict rules, just very little enforcement of them. Again, like Russia. Or Ghana, and other 3rd world states where bribes make everything happen. That means we may see direct payments of value, i.e. gold, for services. In a world where funny money means nothing, actual value, i.e. gold, may circumvent all other regulations and issues.

    Does anyone remember when the USSR tanked? In the aftermath, factory workers, when they were paid, which frequently wasn’t for months, they were often paid not in cash, but in the product of their factory. Folks traded products from their job for whatever they needed. (In the information economy, how would that work?) Selco, the Yugoslavian survivor guy, writes about how he saw alcohol, among other things used as currency. And you can watch youtube videos of people in Zimbabwe using gold nuggets they mined out of river banks to pay for the day’s food. There’s one video of a guy with a homemade scale measuring out 6 cigarettes for a gram of gold. Very interesting.

    So I believe you’re seeing the last gasps of an out of control financial system. I doubt this will last much longer, but I suspect the repercussions will last for the rest of our lives. Some economists are saying 20-30 years to clear this Depression. Others, like Strauss and Howe, talk about this being the 4th turning. I think they’re right about there being cycles of about 100 years, but I wonder if there aren’t supercycles, too, and if this might not be a supercycle turning? Could this be more like a one in a thousand? It seems like there is so much more going on that a mere Depression or Civil War…

    • mondobeyondo

      Yes, the derivatives market is a time bomb waiting to explode.
      When will it explode?
      Hard to tell. It’s a time bomb, so who knows when the final ‘tick’ will be?

    • Old Man

      The massive derivative is a time bomb but will not explode.

      All these derivatives are incomprehensively complex and tied up in counter-party relations impossible to fathom even when forced exposed by regulators – which is not. Why? It is purposely done this way by the world’s financial emperors. So that if one blow, all would blow.

      The derivatives are TBTF. Politicians know it and will bail them out with public money at all cost.

  • “How could we be so stupid?”

    It was not merely stupidity, it was decade after decade of huge lies, backed up with violence, driving fraud and robbery, which made the people getting away with that become more wealthy and powerful. In the short-term, there is nothing to stop those who were the “best” at being dishonest, and backing that up with violence, from becoming more and more wealthy and powerful. As is better known now, the crucial events were back in 1913. There are plenty of detailed answers to the questions of “how could we be so stupid” that can be learned from the history of those times. What happened to Americans was the victory of the methods of organized crime being successfully used against them, using their own power, in their own name. Assassination of the people’s champions was one of those methods. The resulting debt slavery was the survival of the stupid, because everyone else got wiped out. AFTER a privatized fiat money-as-debt and income tax system has been put in place in those ways, then every individual MUST live inside of that established system. To not go into debt in that system shall not be as successful. Rather, the only way to get ahead in such a money-as-debt system IS to go into debt. I have sympathy for the stupidity. For most people, in most actual social circumstances, their only actual alternatives were worse! However, in the longer term, then the consequences of the accumulating triumph of lies backed by violence eventually destroys itself, since the violence can NOT make those lies become true, and so, eventually the whole society is driven to psychotic breakdowns by those means. At the beginning such insanity, the system was not so obvious, and going along with it was, for sure, the most successful strategy to adapt to the actual power of the organized criminals that were dominating society. However, nearer the end, (which is where we are now) then nothing is going to work anymore! Eventually, the “stupidity” transforms into full blown insanity! Each small increment along the way was another step on the paths of least resistance and least morality. HOWEVER, unless one could have been “better” at the techniques of organized crime previously, then there was really nothing one could do at any point in the process to stop it. Too bad, so sad! Whom the gods would destroy, they first drive mad! Americans have been driven mad by the triumph of the Huge Lies that have taken almost total control of their country. Any Second American Revolution has to be sufficiently scientific to understand more deeply WHY the beginning and end was the triumph of deceits. The triumph of deceit drives everything else to become trivialized. American debt slaves became the victims of the most professional brainwashing that money could buy. Their “stupidity” was brilliantly designed! The Second American Revolution needs to draw upon the same sources of deeper intelligence to succeed, after the psychotic breakdowns of the established systems finally make that become possible and necessary.

    • LLB

      NO ***************. And the best brainwashing money could buy is called, “advertising” and “political spin”.

  • Graham


    Inside Job was a very interesting and well researched film documentary. I watched it two weeks ago after purchasing it on iTunes and have some viewings lined up next week to show various other friends. Several have already viewed the links below and were taken aback at the knowledge disseminated, especially due to the names involved. It may be time to take more notice of the content being discussed!

    I posted the following on Michael’s other website (Economic Collapse). You may find some of the links of interest as they take one “beyond” the obvious financial material that people track online and in the mainstream. I have been researching a multitude of topics since the 1980’s. Obviously things are far easier nowadays with the Internet, plus sources who are more willing to talk, that are either in the military, retired from it, or have very close connections with it. The subject matter remains the most highly classified material in the world due to its implications. Re the latter, research Nicola Tesla’s findings (1930’s) then consider what has been achieved in deep black projects ever since. Also checkout how they finance them, out with what Congress signs off annually.

    The present day oil dilemma is based on absolute nonsense and the recent price hikes have a lot to do with the workings of the Koch Bros and keeping the Federal Reserve ponzi scheme and war mongering going to suit the members of the Military Industrial Complex.. In the meantime, everybody else is put on the path of debt enslavement, irrespective of what angle you look at it. It is all a part of the “Grand Plan”.

    I considered very carefully what the consequences might be for posting this data here, but an insight into a far bigger picture may open up people’s minds to alternative possibilities that go far in explaining what is going on and why. Without such data, it is clear that the majority may well remain in a state of fear and confusion. Do not read and view to believe or disbelieve, just read and view with interest, then watch what develops that either proves, or disproves such material. Also research what the purpose of COUNTELPRO is aimed at achieving. For every truth told, an untruth can be found to counteract it. Which one is true?

    Whilst Michael has done a stellar job at exposing the “symptoms” of what we are all seeing and experiencing within and around the global economies and beyond, it is equally important to research the underlying “cause”, or reason. Things never happen by accident on this scale. Bear in mind that for every “action” there is a “reaction”, as in “Cause and Effect”. Fear is not what the human race is about by nature. It is a “tool” that has been, and is still used by many to manipulate and control others, usually en masse, and it is primarily aimed at stifling creativity and freedom, in the truest sense of the word.

    Institutions and corporations that create and use the fear platform are destined to disintegrate and collapse, or be removed after full exposure. The driving force behind their methology is often referred to as the “egoic state of consciousness”, which in its more extreme form leads to sociopathy, narcissism and psychopathy. This has been proven recently by numerous medical professionals carrying out live fMRI brain scans on a number of so called corporate leaders. They know the specific areas of the brain that do not “illuminate” and why. They also discovered that the blood chemistry, DNA and brain scans coincide with those serving life sentences. Who exactly is running corporate USA? I refer to the Military Industrial Complex.

    Taking out the Federal Reserve System and outlawing Freemasonry would be a very productive place to begin “rebuilding”. Check the history of the USA, dating back to the late 1700′s up until 1913. All will become very clear! It is the sum of the parts that make the whole. By understanding the parts, the whole becomes apparent. How do “they” cover it up? The more “incredulous” the action, the less people are likely to believe it. Works every time. We need to “awaken”.

    I hope everyone finds the time to momentarily withhold their judgement and review the following items. Bear in mind we are very heavily conditioned by the powers that be, so remaining truly open minded can often prove extremely challenging. This is some of the best material available due to the background of the sources within it. Belief can also be a question of having faith. Always seek evidence and thoroughly cross check the sources.

    FEMA Camp Documentary:-

    U.S. Air Command/Australian Mainstream Media Interview:-

    The Greatest Story ever DENIED Documentary:-

    Former Prime Minister of Canada Interview:-

    Moon Rising Documentary (Parts 1-9)

  • Graham


    Have you come across this webpage in your research travels? I have seen similar graphics elsewhere, but this makes the too big to fail banks and their derivative exposure easy for all to read and understand, especially considering the complexity of the subject. Interesting name for the site!

    Derivatives: The Unregulated Global Casino for Banks

    • Michael

      That is a great graphic. Hopefully it will help people understand how bad the whole derivatives mess is.


    • vucja

      a house of cards….

  • Graham


    This may be of interest for UK readers and others, or for any future UK coverage you may intend publishing, either here or on the ECB.

    Do include the “Committee of 300” of which I have seen Cameron’s name on a recent “membership” list. This entourage are intertwined with the Council of Foreign Relations, Bilderberg and Trilateral Commission etc. These are the groups many refer to as the “real” government. The following documentary is very interesting in exposing the ongoings.

    Invisible Empire:- A New World Order Defined

  • Yuri Cheepnokoff

    “Britney Spears shows off $20,000 bra”

    • mondobeyondo

      I’m still trying to get over Lady Gaga’s meat dress.

      With a little Worcestershire sauce added, it might have made a fashion statement at the Grammys!

  • MountainHome

    All of this govt. debt happened on our watch, but it will be our children and grandchildren who will be the ones who suffer and it will be them who we put into this ‘soft slavery’.

    Great article again. Thanks.

  • Proftel


    The U.S. is next d “a Civil War, Europe as well.

    The Israelis want crazy because they want to attack Iran (without looking at the atomic own tail).

    Without a “Black Goose” in the U.S., the ********** will anchor drag.


  • Golden Child

    Not to mention that once you have bad credit (probably as a result of not being able to pay astronomically high monthly student loan, car, mortgage or credit payments), you won’t be able to get a job. Once you haven’t had a job for a while, you might fall out of the labor force completely and never work even if you are a young, healthy, educated and or able-bodied adult. Once you’ve hit that status, you become homeless or end up in prison as a result of your desperate broke unemployed behavior. America does nothing better than make it a crime to be poor. It’s truly sad that I see only two social classes emerging everyday in America of the have’s and have not’s; both slipping into complete moral oblivion.

    • mondobeyondo

      But how do you “get ahead” without first going into debt?

      The whole system is rigged around people going into debt, to gain a bigger advantage in the future. Take out $20,000 in student loans, to get a better job in the future. Take out a 30-year mortgage so your home can gain enough equity to purchase a log cabin later. (Gee, that really worked out well!!) Debt used to be a curse; now it’s almost a rite of passage.

    • LLB


  • most of the people that read this blog are conscious of what is happening in the world around us, but if you where to talk to the common person you may be shock at the level of incompetence. july 4th of 2011, i had to work , no big deal so i went into work, while i was working i decided to conduct a small experiment and ask people at random that i encountered during that day a question?. the question was, who did the united states gain their independence from? , and we celebrate the 4th of july to commemorate that day, i was absolutely shock at the answers,i asked 10 people and the answers where as follows:, japan, germany, canada, russia,mexico, europe,and two people told me the south. only 2 out of 10 answered with great britain. god help us

    • mondobeyondo

      That is truly sad.
      I used to laugh at those jokes about the Germans bombing Pearl Harbor. Not anymore.
      We have lost our way, and that is an absolute tragedy.

    • guido

      Yes, and more and more it seems like we’re getting dumber every day. While scientists are pushing the limits of everything we’ve ever known or even suspected, we have people who seem to get more and more superstitious and ignorant every day. You could almost expect to see folks burned at the stake any day now. How can you maintain a republic in a nation of stupid people who refuse to learn?

    • Michelle

      as my 16 y o son told me “Well Mother there are alot of stupid people in the world. Some think the Titanic was just a story.”

    • kt

      @ tray2000 and some folk dont even know that Great Britain is England!

  • Ed_B

    “We just kept borrowing and borrowing and borrowing and now we have destroyed our future.

    How could we have been so stupid?”

    For decades, American has been the land of immediate gratification. Unfortunately for a lot of our people, they apparently had no older relatives to inform them that wealth is built slowly over time and is based upon WORKING and SAVING and not spending; a truly world class DUH! moment, if ever there was one. Borrowing money to spend on consumption is one of the truly galactically stupid ideas to ever come down the pike. We can learn a bit from the wisdom of Henry Ford, who once said, “Thinking is the hardest work there is, which is the probable reason why so few engage in it”.

    To those who haven’t been informed as to how to succeed in life, follow these simple rules given to me by my depression era parents:

    1. Work hard
    2. Save religiously
    3. Invest wisely
    4. Spend carefully
    5. Put family first

    There is always room at the table of success for those willing to do all 5 of the above.

    • LLB

      Really? Because hard work doesn’t pay anymore for most people and the cost of basic needs keeps going up and up and up and up.

    • vucja

      hard work doesn’t necessarily pay off, and Wall Street has the jump on most of us making it difficult to invest wisely.

  • guido

    More and more, I feel like I’m looking at Rome’s last days. When our leader can triumphantly announce that we’re leading the international community from behind, you know we’re not doing so hot.
    Those of you who read that infographic on derivatives, did you follow the links to the articles about 1. Goldman Sachs bankers getting guns and applying for concealed carry and 2. an innocent civilian being arrested for withdrawing her money from Citibank? Very interesting…

  • mark

    The worlds elite will continue to play out the game of fiat and paper wealth as long as us serfs continue to pay the interest on the debt. When enough all at once try to pull out of the game this ponzi scheme is over and a brave new world will raise it’s ugly head. The powerful will not give up their power. They will just change their uniforms to whatever system is in vogue. We serfs can prepare by living within our means. If you have paper wealth convert it to real wealth that you can use to live. Store up as much long term food storage as you can afford. Learn how to use it and incorporate your food storage into your every day life. There is no point to storing food is you do not use it all the time. Many will not eat food that they do not eat on a regular basis. If you have food and other things that you need to live you will be in a position to say no when the uniforms are changed. It is amazing how bad people can become when they have no food. Remember that all this debt is just figures on the wrong side of the balance sheet. They that hold there wealth with real items are the real wealth holders. Bonds, stocks, fiat money are not real wealth. Look at what Argentina has done this last week. Yes, the rest of the world will punish them for stealing from the spanish owners of the oil company, but they still took it. Do American investers buying land in South America feel safe today? I would have my doubts that they do. The same goes for the Saudis, China, and others investing in Africa. Empires are hard to hold onto and very expensive to keep. That is why it is so important that neighbors help out their families together and not try to be the lone wolf out there. There will always be some bully out there that wants to take what you have. That bully might be a banker or a government official not following our Constiution.

  • dod

    Even if you are out of debt and saved for retirement, the elite can still take your land and everything you have for any reason they deem, due to the new Executive Orders which were recently passed. Now shut up and be a good slave.

  • Don Levit

    In Pirke Avot, the Ethics of our Fathers, it states that not paying back the lender is like stealing from God.
    Don Levit

  • gary hillerich

    the grand plan was hatched at Jekyll Island in 1910,as the most powerful banksters in the world and their agents/minions met in secret and put together the biggest ponzi scam in the history of the world[the non-federal no-reserve CORORATION]
    the 1st stage of the plan was to eliminate any real threats to their plan,and there were a few.. most notably John Jacob Astor,the richest man in the world at the time along with the Rothschild a giant unsinkable vessel was built called the Titanic, and all the men that could stop the federal reserve act co-incidently were all urged to ride its maiden voyage while the men in on the scam weiseled their way off the ride..the fed stoppers did take that fateful cruise and all did indeed die..the non-federal no-reserve act was passed in the wee hours of the morning on x-mas eve 1912 and the rest is history..
    the biggest fraud and scam in the history of the world was implemented[the fed] and the road to one world government was set in place..
    as soon as the dollar soon implodes,the american sheeple will be on their collective knees begging for a new currency[the hegalian dialetic..create the problem and offer up the solution]and therein we will see a one world digital currency..the anti Christwill take his throne in Jerusalum or Tel Aviv and one world government[hell on earth] will be offically born..
    until the real Jesus Christ reappears and throws the anti-Christ[the devil] into the lake of fire,[along with all his minions on earth that have served him and his evil] for the next 1,000 years..I have repented my sins to the lord God almighty and have no fear of death and will continue to fight the wickedness and evil now upon us the rest of my days..

    • Graham


      I’m guessing you have read the book “The Creature from Jekyll Island”. The following link may shed more light on the matter for those wanting to view some video material on the history of it and the Federal Reserve.

      A Second Look at the Federal Reserve (Parts 1 of 7)

  • Bob Marshall

    Jan. 08. 1835 Why was this date important? It was the last time the national debt was completely paid off. Andrew Jackson called called the Bank of the United States,” the Monster” and as he promised in his second term he would crush it. He called it a den of vipers and thieves and said i will rout you out.The country zoomed into a period of prosperity.

    • Derp

      This has been tried again, but everyone that has tried it has been **************, or completely marginalized as Ron Paul has been.

  • Gary2

    Run up your credit cards, default and go chap 7. Repeat the cycle.

    Do your own wealth redistribution.

  • MisterC

    “How could we have been so stupid?”
    Ask Gary2, he is stupid incarnate.

  • Brian

    True prosperity does not require debt. ( Specifically debt with interests – which is always connected unless you are borrowing from family or friends ). Charging interests on loans is how banks make money, but if people are prosperous – they don’t need to get a loan.
    True prosperity is the enemy of the banking cartels, so they came up with a plan – to control inflation. If you can control inflation, you can keep the average person poor enough that they can’t pay cash for a house or a car, or any of the things on a long list of things people get loans for – then they have to seek a loan to get what they need to live. This makes the banks money – lots of money!
    How do they control inflation? ….Central banks. The Federal Reserve System is the mechanism for controlling inflation, We were told long ago when it was created that it would benefit the American people – but as always they lie for their own greedy gain. Any tool can be used for good or for evil, it just depends on who is using it and what their motive is. The banks in recent years have shown the public their true nature and motivation – they are not your friends and they are not in business to help you prosper.
    Debt is slavery – period. Renounce the banks, renounce ever getting into debt again. Learn to live on less, with less, and live without it if you can’t afford to pay cash for it. Then and only then will you begin to truly prosper.

  • Tom Brown

    While I agree that private debt is a terrible problem, it’s a mistake to think in terms of the gold standard or other “convertable” money standard. The fact is that the US and many other countries in the world have a floating exchange rate fiat (or sovereign) money system, wherein the value of a dollar is established by the fact that the government accepts payment in dollars for tax liabilities. The European Union essentially does have a “convertable” money standard… which is one of the reasons that Italy, Ireland, Spain, Italy, and Greece are in so much trouble… they have no authority to print their own money. The US, Japan, UK, Canada, Australia, Switzerland, New Zealand, and many many other countries DO have the sovereign authority to print their own money. I’ll get to why this is so important later. Many people think that we’ve been printing too much money. This is wrong… the only money that’s been “printed” is to exchange for already existing treasury bonds in the hands of banks. Thus the Fed (with QE1 and QE2) traded banks money (in the form of reserve deposits) for treasury bonds that the banks already owned. Essentially the banks traded one form of money for another paying a smaller interest rate. That’s why QE1 and QE2 did not cause any inflation and why they had virtually no effect whatsoever on the economy. The only effect they had was a manipulation of medium term interest rates on the government bond market. That’s it! People are over-burdened with debt. The QE1 and QE2 were feeble attempts to get the banks to start making loans again (in an attempt to get people even FURTHER in debt!) so as to re-inflate the bubble. People don’t want to borrow though! Thus that “money” never made it into the real economy. It just sits as reserves on the banks’ accounts. What the government did was equivalent to “pushing on a string.” It had little or no effect… and a good thing too! The last thing we need is for the private sector to get itself even further into debt!

    The fact is the amount of money “printed” by the government was dwarfed by the amount created out of thin air by the banks during the expanding housing bubble (and other bubbles before that). Banks in our system, have a special charter from the government to create as much money as is demanded by “credit worthy” individuals, families, or businesses. The only requirement is that the money that banks create is offset with debt (I like to think of debt as anti-money). A common misconception is that banks loan money from deposits or reserves. This is NOT the case. Banks do not check their reserves before making a loan… they simply make a double-entry on their balance sheets: The put the loan amount in the “Asset” column and the offsetting deposit account in the “Liabilities” column. If you were to transfer your deposit to another bank, then the Fed would credit the other bank with reserves matching the deposit account regardless if the original lending bank had enough reserves to cover it. Indeed if the lending bank ran a reserve deficit, it would need to borrow reserves to cover the deficit in it’s own account by the end of the day. One way it can do that is to borrow the reserves credited to the other bank! It could also attract transfer deposits, or borrow money from the Fed discount window. As long as the bank pays a lower interest on the reserves it borrows than on the loan it extended, it makes money. Banks, in our fiat money system, are NOT constrained by reserves or reserve requirements. They can create as much money and anti-money as is demanded by the economy! And again, the amount of money that’s created by the government directly is dwarfed in comparison. (Bank money is called M1, M2, M3, M4, etc… while “base money” or government money is called M0 (paper and coins) or MB (reserve balances)… Google “money supply” to see a chart of how much more M2 there is than MB).

    So the point of all this? We are in terrible debt to banks. One reason is that the anti-money the banks create has a time limit. The money banks create can be used to annihilate the anti-money, but the banks take a cut and keep it for themselves! That cut is called the interest, and thus there’s never enough bank created money to annihilate the bank created anti-money, because the banks always take a cut of the money for themselves. I’m not criticizing them… that’s just what they do!

    Thus the only way there can ever be enough money to annihilate all the anti-money on the banks books is if the GOVERNMENT prints enough to make up the difference… AND (this is crucial) SPENDS it into the economy! QE1 and QE2 DO NOT qualify, because that money was just used to pump up bank reserves and lower bond interest rates… it was NOT put out in the general economy!!!

    Now there is one other way to draw in enough money into the economy to annihilate the anti-money, and that is by running a trade surplus. The equation, in fact, is very simple:

    private savings = government deficit – trade deficit

    That’s it! If we want to increase private savings we need to either boost government spending or decrease the trade deficit. There’s not other way around it! If we don’t, then we’ll NEVER have enough money in the economy to pay off all our debts!

    The government “debt” is somewhat of a misnomer. The government can create whatever money is needed to pay it’s own debt. The ONLY limitation to how much money the government can create is inflation. The thing is though, the banks create SO MUCH MORE money than the government does, that it will take a lot of “running the printing presses” to even start to catch up to it! In other words, there’s NO DANGER in the government spending a LOT MORE than it currently does. We’ll know when the government is spending too much because we’ll start to experience inflation despite no growth in private credit. When this happens, the government can raise interest rates or increase taxes to draw the excess money out of the economy and control inflation.

    The basic problem is that we’re living in a fiat money world, but our thought process is stuck in a convertible currency past. People make all kinds of false analogies with European countries forgetting that the Europeans DO NOT control the Euro printing presses. Or they make false analogies with households… again, individuals CAN NOT create our own money… nor can states or municipalities. Only banks and the Federal government can create money! That’s it… and the banks do much MUCH more money creation than the Federal government does… and the problem with that is that they also must create the anti-money that goes with it… which ultimately sucks not just the principal, but also the INTEREST right OUT of the rest of the economy! There’s no way around it! The banks will suck up more and more of our money resources unless:

    1) Banks are forced to take a haircut (write off some debts)
    2) We can create a trade surplus (rather than a deficit)
    3) The government produces more money and SPENDS it into the economy so we can pay down our bank debts!!!

  • Tom Brown


    While I agree with the majority of your sentiments, it just isn’t true that true prosperity doesn’t require debt. Look at Mitt Romney and his activities doing leveraged buyouts at Bain. Bain didn’t have all the money required to perform the buyout of companies… they had to borrow that money, putting the company they were buying out up for collateral to do it.. much like you put the house you’re buying up for collateral when you purchase a home with a mortgage. After the deal was done, they could liquidate the company’s retirement plan to help pay off their creditors (the Federal retirement fund insurance program would pay for a fraction of that lost retirement, so the employees, in general, got some fraction of their retirement in the end from the tax-payers). Mitt used this basic strategy to create tremendous wealth for himself ($250 Million)! He couldn’t have done it without borrowing money. Of course, he never put his own personal wealth at risk… he was putting the companies Bain was buying in debt. So that’s the trick… if you can put somebody else in debt for your benefit, then it can create untold wealth for you!

  • Tom Brown

    BTW, here’s why many European countries essentially have an old fashioned “convertable” currency: The printing presses for the Euro are controlled by the European Union, which is in turn controlled by its governing body and charter established by the first members (Germany and France). In order for the Germans to agree to the Euro, the charter dictates that member countries are limited to a 3% deficit each year (3% of their GDP). This works out great for the Germans because they have a strong export oriented economy. Remember the equation:

    private savings = government deficit – trade deficit

    So one way to increase personal savings is to made the trade deficit negative (i.e. have a trade surplus). This is what the German’s do. Unfortunately for a country like Greece (which does not have an export oriented economy), they have a trade deficit. That combined with a government deficit, which must be held to 3% under the terms of the Euro, means that personal savings in Greece must be negative, which is why people there are so upset.

    Germany thinks that everyone should just have an export economy like they do. What they don’t realize is that’s almost impossible if the other Euro countries are all using the same currency! Normally what would happen, with a floating currency arrangement, as the German trade surplus continued, the Mark (the old German currency) would rise in value compared to other currencies, making German products more expensive. This in tern would help countries like Greece develop their own industries, since Greek products would look cheap by comparison.

    The other irony is that Germany has a very short memory. After World War II, the allies, led by the United States, wanted to avoid the problems imposed after World War I where unpayable reparations were placed on Germany resulting in devastation to their economy and the rise of the Nazi party. So instead of hefty reparations, we did the opposite! We forgave all of Germany’s debts (except a few short term debts between companies and employees). This helped on two accounts: since most debts were owed to Nazi organizations, it choked the remaining life out of those organizations. Secondly, it gave Germany the chance to start again with a fresh slate! … and it worked beautifully! Germany is now the economic star of Europe! … unfortunately, the German’s have forgotten how their debts were forgiven by the victors of WWII… and now they are punishing the other Euro members with forced austerity.

  • Tom Brown

    For thousands of years, the ancient Sumerian, Babylonian, and Israeli civilizations (~4000 to ~3000 BC) understood more about debt and the economy than we do today! They realized that debt tends to grow exponentially, while economies tend to develop on an S curve… flattening out after some time. We have evidence on ancient clay tablets of scribes learning how to calculate how many years it would take a debt to double at a given interest rate. A doubling every X many years is the essence of exponential growth. Back then, most debts were owed to the palace in the form of grain, which served as a form of money. Eventually, the economy became so overburdened by the exponential growth of palace debt, that it ground to a halt. In order to jump start the economy back to life, the palace would forgive all the debts. This would generally happen when a new king took the throne. We are in desperate need of the same kind of treatment today, but the rentier class, who makes money from interest and rent payments, will do everything in their power to prevent it. They want to protect their idle rich, rent taking lifestyle!

  • Derp

    Actually student loans are the worst type of debt. Credit cards bought you something and that debt can be discharged in bankruptcy. Student loans can not be discharged and you got nothing for it at all, nothing you can sell or use in any way to enjoy or be helpful to you.

    And that average is a load of crock as it has been proven schools under-report debt loads the same way they over-report salaries and employment.

    It is going to be about 6 figures for graduates in the past 5 years. Public schools are costing $20k a year and with $10k a year for food, housing and books (very conservative amount there), that’s still $140k over 4 years. Wait, that’s not correct is it, that’s $30kx4 right? Nope, because origination fees and interest will rack up so that within 6 months of graduation you’re looking at a number to that extent, and expect to pay 1.5x to 3x the amount over the life of the loan due to daily capitalization.

  • vucja

    we were already “invaded” on 9’11 and nothing has been the same since.