I am one of those who do not believe that a national debt is a national blessing, but rather a curse to a republic; inasmuch as it is calculated to raise around the administration amoneyed aristocracy dangerous to the liberties of the country."

- Andrew Jackson in a letter to T. H. Colman, April 26, 1824

Greetings,

Our nation is in turmoil. Political parties war with each other on a daily basis as they seek to impose their own malformed economic ideas on a country of debt slaves.  The international bankers sit back and laugh gleefully.

What if the ideas of both sides in this skirmish are wrong?  What if the main enemy is not the party across the aisle?

Even worse, what if the leaders of both sides fully understand this, and yet determine their only option to be a prolonging of this economic play to yet another scene?

The U.S. Federal government has an enormous debt problem.  However, without it we would have an even larger economic depression.  The Democrats want to increase the level of debt spending slavery upon the backs of future generations.  Meanwhile, the Republicans want to slash debt spending, which would spin our nation into a deflationary spiral – without fixing the underlying problem.

The major banks have their boots on the throat of, not just America, but every developed nation in the world.  All debt is a promise of future labor – either by the entity taking out the debt or via claims of future labor that the entity owns.  Who owns the most claims on the future labor of people all over this planet?  The banks do.

Most readers probably thought that the title of my article was referring to the aristocracy of various politicians.  No, the aristocracy is of bankers – directing the affairs of their slaves to their own sinful advantage.

Everyone needs to step back for a moment and ask themselves one very basic question:

“Why is the US Federal government spending between $1.6 and $2 trillion dollars more than they take in via receipts for each of the past three years?”

The Democrats would say that it has been needed to fix the mess that George Bush II left us in.  Wrong.

The Republicans would say that it is an attempt by the Socialist/Marxist/Communist class to undermine our capitalistic system of economics. Wrong.

The answer is that the Federal government is attempting to replace as much of the debt that has been defaulted on as it can.  It can only attempt to accomplish this by taking out large amounts of debt on its own.

Here’s another question:

“Why does the Federal government feel the need to replace all of the defaulted debt with fresh, new debt?”

All money, in all forms, is simply a claim on debt.  This means that our nation’s overall money supply is the sum total of all claims on debt.  This amount is the exact same as all promises of future labor.

What happens when debt is defaulted on?  There is a promise of future labor that will never be accomplished.  The claim on that defaulted future labor (money) is now gone.  The money supply will shrink by the exact amount of the default.

What happens when the nation’s money supply shrinks?  It creates a scenario where each unit of money is now worth more, since there are fewer units.  This means that it now takes fewer units of money to pay someone for their labor, so salaries drop.  It takes fewer units of money to pay for various commodities, so their value will go down (unless held high by emotional thought processes and/or speculation).

A shrinking money supply brings about a deflationary spiral, which has and will bring about an economic depression.  A major depression can introduce major social unrest and political turmoil.  This is why our Federal government is sticking every finger in the economic dike in a losing effort to keep the deflationary floodwaters at bay.

Is there a solution to our economic problems? 

We must get back to the historical practice of having our money supply based only on completed labor.  If we are going to have a national currency then it needs to be issued by the Treasury instead of the bankers, otherwise it will be based on future labor promised via government bonds.