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From the author of: The Survival Guide For The One Percent




the top ten myths about not paying off our national debt



page two

The myth held above all other myths: Currencies are specie backed; fungibility is still practiced; limiting access to currencies minimizes inflation; limiting access to credit is prudent fiscal policy, and unpaid debts to central banks results in injury to the lender.


Fungibility died on August 13th, 1971, with the Nixon Shock.

Credits for above images of Gold Bullion at base of page.

I have placed this Myth as number eight, and may be reviewed in more detail on the next page.

    • The end of the Great Depression began through the concerted efforts of a President willing to spend the money to get some of the people back to work. Ultimately, the money spent to manufacture the goods needed for WWII put all people wanting a job back to work.

      Contrary to today, debts of every type, and quantity were forgiven following WWII. The central banks are preventing it.

      If money is placed back into an economy it grows, and puts people back to work. If pain is inflicted upon a nation, when it attempts to keep its citizens safe, the source of that pain must be eliminated. If a nation's health is diminished by individuals who demand their approval for access to funds is required, then they are the source of the pain. The links below are about the myths they perpetrate, and the dogma they present to keep us believing in their opinion about currency supplies, and fiscal policies.     This foolishness must end.


Some of the basics to remember, when you're wondering how, and why there are reoccurring crashes, and recessions:


It might be worthwhile to list who is responsible in driving our nation's debt to the estimated $18 trillion, but its far more worthwhile to note that the majority of the debt was imposed upon "we" United States citizens, by bankers (who, of course, know the inside track, and rules of the banking industry), and by those who engage in the practices the banking industry loves most. Nothing is more profitable to a bank's high dollar lending than wars, and nothing more important to a bank's high volume individual portfolio loan, than the residential mortgage.

It is worth noting, at this time, that the first rule of dogma is to know how, and when to label your opponent as an intellectual subordinate to your superior knowledge, and experience. Please also note that if their claim of superior knowledge, and experience was accurate, we would not have experienced the cataclysmic injury imposed upon us all in 2008.

In the end, we as United States citizens have been left holding the bag for the repayment of a cataclysmic debt, and are suffering from a:

a clear and present danger to the security of the United States

It has also become clear the Republicans, and many Democrats, within both houses, have failed to understand that they have the responsibility to the welfare of United States citizens, and not the banking industry. They even discuss ceasing to pay Social Security benefits back to those who payed them in through taxes. They discuss, instead, to use that money to pay the banker's loans. Again, we see them providing monies to those who never payed a cent into anything, as well as providing methods (The Panama Papers) to others to avoid the taxes they owe.

We, instead, as United States citizens need to seriously consider the following:

stop repaying the national debts related to banking errors, or wars

It might not be news to the majority, but for those who have not yet learned, currencies no longer have a commodity of value to back them up. That stopped during the Nixon administration. This means, of course, if those in the money production, and distribution business were not paid back the $18 trillion, their loss would be no greater than that of printing (only a tiny portion needed to be printed), and administration. This might be a high of one tenth of one percent. Even that is sum too high to consider repaying.

It is important to know how the value of the Euro, the Dollar, and other currencies are set. They are no longer based upon some alleged pile of gold bullion stashed away, within some vault. Those days ended when the oil producing nations stopped taking cash, or electronic transfers, and demanded gold.

It was pretty clear for President Nixon that such a demand was impossible to accept. At the rate we consumed crude, our gold would be gone in very short order. Although it is extremely difficult to find specific documents to back it up, and I am unable to point to any specific references to it, there had been commentaries that our refusal to pay in gold was the real reason behind the oil embargo, during the mid 1970's.

Their demand for payment in gold for a resource of perpetual need made it impossible for gold to remain as the commodity backing the value of the greenback. If there had been some previous reasons to abandon the gold standard this one would have been enough.

It would, of course, be vital that all stories about their demand for gold in payment for oil be squashed. We could go off the gold standard for reasons portrayed to the media as sound, but certainly not for reasons suggesting that gold, or any fungible commodity would ever be a viable concept again. Fungibility itself was now extinct.

Still, the Central Banking System based in Basel, Switzerland maintained a system of lending, and repayment just as it had, prior to the extinction of fungibility. The 2008 crash cost people their homes, their life savings, their dignity, their health, and even their lives. Police actually threw people out of their homes, until many came to their senses, and refused to continue being the henchmen for bankers they had never met. The NYPD decided to stop acting helpful to bankers, after they learned their police retirement fund had been decimated in value, after the 2008 crash, due to the deflation in value of nearly every segment.

The last point to make, before I get into more detail as to why it is time to stop paying the national debt: The people demanding to be paid back, are precisely the people who got us into this mess. Their business is getting money into circulation, and earning interest income. Their favorite loans relate to war, and they got that in spades, due to GW Jr, and his unending wars in Iraq, and Afghanistan. (And, no WMD's ever being found.) There should be no sympathy, whatsoever, for them, and their goals.

As the old saying goes, "Payback is a bitch", but the payback I propose would be of an entirely different nature. The goal is not simply money. The goals include a demonstrative, and complete lack of concern for their interests, and welfare for their system, which displayed the same for us. This payback is for the hundreds of years of condescending, and pedantic attitudes. They hide behind the condescension, while pouring on the dogma, hoping that they can, as another saying goes, "Baffle them with bulls**t.", but in this case "Baffle the citizens of the United States (if not the entire western world) with bulls**t."

This is the latest, (April, 2016) about the criminal behavior of our banking system. During, and after the banks were getting bailouts, five big banks admit to manipulating currency markets.

"Five big banks agree to pay more than $5 billion to settle regulatory charges."

Click on the button below to open the article in a new window.



So, let's take a look at the dogma:
(Links to referencing articles are in this color.)

All of it begins with the purported dangers to society if the wisdom of the International Central Banking System based in Basel, Switzerland, and their advisors is ignored. We, as they suggest, are incapable of preventing runaway inflation, and currency devaluation, if they do not govern the supply of currencies, as well as possessing the tools related to interest rate adjustments. For purposes of easier reading, as well as writing, the players are:

CBb

=  

International Central Banking system based in Basel, Switzerland

CBny

=  

Corporate Banking based in New York (There are many other major cities, but we'll keep it there for simplicity.)

USFRdc

=  

Board of Governors of the Federal Reserve System headquartered in Washington D.C.

WBdc

=  

The World Bank headquartered in Washington D.C.

IMF

=   

The International Monetary Fund headquartered in Washington D.C.

EZeu

=  

The Eurozone/European Union headquartered in Brussels, Belgium


Due to their errors, I include the following:

Fannie
Mae

=  

Federal National Mortgage Association (FNMA) headquartered in Washington D.C.

Freddie
Mac

=  

Federal Home Loan Mortgage Corporation (FHLMC) headquartered in Tysons Corner, Virginia

  

  


Due to their ratings of subprime mortgage bundles as "AAA", when most that failed were not even a "B", I have to include the following:

MOOD

=  

Moody's Investors Service: Provides credit ratings to the global capital markets headquartered in Boston, MA

S&P

=  

Standard & Poor's: Publishes financial research, and analysis on stocks and bonds headquartered in New York City, NY

FITCH

=  

Fitch Group is comprised of: Fitch Ratings: credit ratings and research; Fitch Solutions: credit market data, analytical tools and risk services; BMI Research, headquartered in New York City, NY, and London, England I am not familiar with FITCH's involvement.


The following are examples of the basic dogma of their currency management, financial management, and purported societal protections. I follow them up with my response, and assessment to their dogma.

  • Myth Number One
    Myth Number One:
    Failure to repay existing loans that are held by foreign governments would result in world conflict.

  • First, and foremost: The majority of the United States debt is NOT held by foreign governments.

  • According to the U.S. Treasury Department, at the end of August 2014, only 34.4% of the debt was owned by foreign countries .

  • The largest foreign holders of U.S. debt were:
    • Mainland China (7.2%)

    • Japan (7.0%)

    If these figures are correct, our big fear is that 7% of our debt is a potentially crippling event, because we must capitulate to the Chinese?

    If the Chinese are becoming more aggressive with their recent demands with the new President Tsai Ing-wen of Taiwan to acknowledge the so-called One China principle, then one should recall two things:

    1. China has been pressuring this, as well as military actions, since the end of WWII. Yes, their military has never been stronger, and a takeover would be a cake walk. We would likely never intervene, but we just might. There would be an enormous, and negative fall out for China if they forced our hand. It relates to:

    2. The organization known as: "The distribution arm of the Chinese economy". It's Arkansas' headquarters of   Walmart. Numerous business magazines, and their articles have estimated that Walmart would lose an estimated 65% of its gross sales. That is more that enough to take down any corporation. It would not bother me, even slightly, to see that happen. Why? Here is an article I wrote about what happens if we were to see Walmart go down. It has some surprising benefits. This is a link to that portion of that article.

    It makes little difference if we're looking at this from a total debt resolution. The Chinese, and Japanese debts are only a problem if the debt they bought is war, or banking bailout money related. If they bought debt related to either, then Walmart might have a problem.

Here is the biggest surprise:

  • The largest owner of U.S. debt is Social Security. Since the Social Security system is a government entity, how can the government own its own debt?

    • This is described as a debt, when it should be more accurately described as an ongoing obligation. It is also in a constant state of flux. This is not a debt. This is a contract, and one that has been breached by those easily capable of resolving the breach.

    • How can the government claim injury to the taxpayer, and refuse to repay a debt into the system, from which it stole the assets?

    • This is where the beginning of the solution starts. The Social Security Trust Fund has been regularly robbed by the legislative branches to fund an uncountable number of projects. They never got around to returning the money. Social Security, however, could be a model of how to resolve all so called debts.

    • Since the so called Social Security system debt has nothing to do with war, and none of the players involved are noted above as banking interests, this debt must be paid, prior to ALL others. This debt takes first position.

    Sorry to the loyal Tea Party members. Your dramatic display of professed loyalty to the United States, and your demands to reduce debt, through methods that include defaulting on Social Security first, makes no more sense than does the rising stardom of the freshman Senator from Texas Ted Cruz. (Well, Cruz, as a well funded "useful idiot" coming from Texas makes some sense)

    The single most alarming aspect of defaulting on SSI first, and it being promoted by the the loyal Tea Party members, is that it once again, breaches a trust, between the US, and its citizens. It would confirm what we are all beginning to understand fully. Prior to becoming the distinguished members of the House, and Senate, they were crooked individuals, we refer to as politicians.

  • Myth Number Two

    Myth Number Two: Spending of public monies, for pensions, health care benefits, and social programs is poor fiscal management, and will lead to inflation. Nations, or states engaging in these programs must cease in preference of practices of austerity. Prime Minister Merkel gave us the perfect example, when she went after Greece, and it's Prime Minister.

  • Myth Number Three

    Myth Number Three: Interest rates are set based upon the need to minimize inflationary spirals.

    • When Janet Yellen, of the USFRdc, sits down, and discusses the Federal Reserve board's assessment of the strength of our economy, all the people in the financial services industry stop what they're doing to hear of their assessment, and resulting decisions. The most laughable part is their discussions of the interest rates they will impose.

      She suggests that their goals are to guide the economy safely through rough waters. If they decide the sailing might be easy, then that might promote "excessive rates of growth", and that would cause inflation. They suggest that they need to increase the interest rates they charge, so that the growth might be minimized to manageable levels.

      What they really mean is that the economy is producing more growth. That means the country, and all companies, and peoples will have extra cash flow. Borrowers could then afford to pay them more for the monies they have either already borrowed, or will likely borrow.

      When have you "ever" heard of a problem associated with full employment, and an increased standard of living? The One Percent don't seem to object to their improved standard of living.

      All she has done is send the message to every lending institution that their research indicates they are safe to increase interest rates for all their clients, without an increased risk of default.

  • Myth Number Four:

    Myth Number Four: Acquiring excessive debt, or the failure to repay existing loans in a timely manner will result in the lowering of a nations credit rating, and result in higher interest rates being imposed upon them.

    • MOOD, and S&P have been accused of being as potentially crooked as any organizations, within the history of the US, and certainly during the life of the Financial Services Industry. I am not familiar with FITCH's involvement, nor have a read of any specifics of their involvement in the 2008 crash.

      S&P had the unmitigated gall to reduce the United States' credit rating from AAA (outstanding) to AA+ (excellent) on August 5, 2011.

      I have to put the following in a specific manner so their slime bag attorneys can't get overly litigious.

      I   
      "personally"   consider actions that exhibit complicity in creating injury, and the subsequent engagement in the deliberate exacerbation of injury through false accusation to be treasonous, especially if an organization's original actions may have been part of the infamous 2008 crash.

      I would have hoped to have Congress, as well as the United States President, find all means possible to prosecute every last member of any ratings corporation, with even the slightest involvement in the downgrading of the United States, especially if their actions created a need for the United States to borrow more funds then they would have, prior to the 2008 bailout.

      At least they did do the following:

      The following is from Wikipedia. This is a link to the full article.

      The 2011 S&P downgrade was the first time the government was given a rating below AAA. S&P had announced a negative outlook on the AAA rating in April 2011. The downgrade to AA+ occurred four days after the 112th United States Congress voted to raise the debt ceiling of the federal government by means of the Budget Control Act of 2011 on August 2, 2011. Later, the US Government commenced an investigation into S&P's role in the rating of several mortgage backed securities which played a role in the 2008 financial crisis.

      In order to mend its relationship with the US government, S&P asked its then CEO to step down, a mere 18 days after the US was downgraded. S&P announced on August 23, 2011 that Deven Sharma will step down as a Chief of Standard & Poor's effective September 12, 2011, and will leave the company by end of the year.

      The downgrade was criticized by the U.S. Treasury Department, both Democratic and Republican Party political figures, and many business people and economists.

      Both Fitch Ratings and Moody's, designated like S&P as nationally recognized statistical rating organizations (NRSRO) by the U.S. Securities and Exchange Commission, retained the U.S.'s triple-A rating. Moody's, however, changed its outlook to negative on June 2, 2011 and Fitch changed its outlook to negative on November 28, 2011

      A personal request: I urge all who read this to communicate to their representatives a need to repay these organizations with yearly audits, and burden their legal, and accounting departments with so much work that their costs quadruple. They can't take those costs off their books.

      I also urge all who read this to communicate to their representatives the need to resolve our financial issues, by refusing to repay large portions of our national debts.

      I do not know if the negative ratings has caused the U.S. tax payers any more money, but it is an additional reason to stop paying off creditors, if the rating agencies can do what they did prior to 2008, and then act high and mighty.




  • Myth Number Four:




Nearly 96% of buyers of Episode One have continued on to purchase all subsequent episodes. It is my impression that if I provide new potential readers an easy path to the series of episodes, I will likely develop, and keep new readers.






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