Ending the National Debt

--Credit goes to this poster on the Daily Paul website named Harry Dingey--
-he states at the end that he is ok with others posting if the idea is a likable one, so I'm asking ATS to give it a quick run down and see if it will or won't work, I unfortunately don't know enough to say either way...

Enjoy..



How would you like to totally pay off the National Debt without costing the American People one penny?

THIS IS VERY, VERY SIMPLE and EASY !!!

REMEMBER ONE THING; KEEP YOUR EYE ON THE MONEY SUPPLY.

If the money supply goes up you create INFLATION and prices goes up.
If the money supply goes down you create DEFLATION and prices goes down.
If the money supply remains CONSTANT. Prices tend to trend lower.

1) First we must change to “100% reserve banking system” right now:

2) Abolish the Federal Reserve.

3) We must take “fractional reserve banking system” away from the banks. This allows banks to print 10 times the amount of every dollar on deposit (When we do this they call it counterfeiting) and increases bank profits by tenfold.

This also increases the Money Supply by a factor of tenfold for every new dollar being borrowed and printed by the Treasury Department.

4) This year the Federal Government will borrow and print $1.4 Trillion Dollars.

Eventually this money ends up deposited in a bank. The Banks just like a magician are allowed to take that $1.4 Trillion Dollars and turn it into $14 Trillion Dollars in loans or anything they want and in doing so they also Increase the Money Supply by total of $14 Trillion Dollars.

Wait a minute!!! Ain’t that the same amount we need to pay off the entire Federal National Debt?

We should take “Fractional Reserve Banking System” (this should be called CONTERFITING ) away from the banks and force them to use “100 % Reserve Banking System”.

Then tell the Treasury Department to print up $14 Trillion Dollars of non-interest bearing Treasury notes (dollars) and buy back all the Interest bearing Bonds (Our Total National Debt).

This will not increase the Money Supply by even one penny because we will destroy all the interest bearing Bonds we just purchased. Eventually this newly printed money ends up deposited in the Bank.

WOW.. we just paid off the entire $14 trillion dollar National Debt by printing non-bearing interest Treasury notes (dollars) and does not cost the American people one penny.

No more annual interest payments on the National Debt.

Every time I go through this thing I come up with other benefits:

Some National Debt Facts:
• Social Security is $2.6 trillion in the black (IOU’s).
• Social Security in 2010 it ran a $68 billion surplus.
• Only $1.2 trillion is owed to China.
• $10 trillion is owed to American people.

When we pay-off the National Debt as I have suggested we automatically create a Positive Social Security Trust Fund of $2.6 trillion dollars that I suggest we should separate this Trust Fund from the General Account.

Presently we are paying about $400 Billion Dollars every year interest on the National Debt.

But, if interest rates starts going up because of Hyper-Inflation and that’s exactly what the Price of Gold is telling us right now. This interest we are paying on the National Debt could easily grow to an amount larger than the total Federal Gross Income tax receipts.

This is a very Powerful Monetary Tool and this gives you an idea of how the banks has been given this sweetheart deal by Congress back in 1913 which has allowed the Banks to literally rob the American people out of trillions of dollars.

This explains how the Rothschild Banking Family has amassed between $25 to $100 Trillions of Dollars of wealth. Who knows maybe ever more? Do you honest believe that anyone could make that much money without some type of Bogus Ponzi scheme?

This will force all the American Banks to go back to a Fair Banking System of “one hundred percent reserve banking system”.

So, if you understand what I am saying and you want to do something to draw attention to this article. Click on “Like”.

Harry Dingey
Please copy and post if you like this idea.
SO MOTE IT BE..

------------

Thoughts?

-LL

reply to post by Lapislazuli

$10 trillion is owed to American people.

Then why do WE pay taxes ?

Where will $10 tillion be "gotten" ?

Look for Congress to raise taxes and get a value added tax next year.

I Want My Money Back !!

reply to post by Lapislazuli


This is a very good theory! Thanks for sharing.

I wonder though....where does the money go that it owed to the American people?

Will we be able to wipe out the personal debt owed by the American people at the same time?

reply to post by Lapislazuli

I'm sorry. It's an interesting idea but a 100% reserve banking system wouldn't work under any conditions I can see. Unless, perhaps, he means something different by it.

This year the Federal Government will borrow and print $1.4 Trillion Dollars.

Eventually this money ends up deposited in a bank. The Banks just like a magician are allowed to take that $1.4 Trillion Dollars and turn it into $14 Trillion Dollars in loans or anything they want and in doing so they also Increase the Money Supply by total of $14 Trillion Dollars.

Under a 100% system you have to keep 100% of the deposits on hand in case it's needed by a depositor. Keeping it on hand means you can't commit it anywhere else, like a loan or an investment. That means $1.4 Trillion comes into the bank and the bank has to sit on it.

That means the banks can't make loans to anybody. It can't use the money for itself to provide the income to provide for staff or electricity. A 100% system is identical to putting your money in a can and burying it in the back yard.

As for the rest of the plan, sorry, more problems. Print up 14 trillion dollars and what happens to the value of the dollar? It falls drastically, that means inflation goes sky high. Every country in the world will run to dump dollars and the value of the dollar will fall even further. Dollars will stop being the world reserve currency.

We print a ton of dollars and hope to find people who will give up their interest bearing bonds for non-interest bearing. Why would they do that? Besides our debt isn't entirely to foreigners. As you say $10 trillion is owed to our citizens. What happens when we tell Social Security recipients that they only get half (or less) of their purchasing power because we devalued the dollar. Same with food stamps or any other program.

It will cost the American people a ton. Every dollar they have in their wallets or in savings will suddenly be worth 10 cents, or whatever the new value of the dollar is. (I'm too lazy to figure it out.)

Sorry, I'm getting tired. Someone else can finish the explanation of why 100% and monetarization of the entire debt won't work.

Originally posted by charles1952
reply to post by Lapislazuli

 

I'm sorry. It's an interesting idea but a 100% reserve banking system wouldn't work under any conditions I can see. Unless, perhaps, he means something different by it.

This year the Federal Government will borrow and print $1.4 Trillion Dollars.

Eventually this money ends up deposited in a bank. The Banks just like a magician are allowed to take that $1.4 Trillion Dollars and turn it into $14 Trillion Dollars in loans or anything they want and in doing so they also Increase the Money Supply by total of $14 Trillion Dollars.

Under a 100% system you have to keep 100% of the deposits on hand in case it's needed by a depositor. Keeping it on hand means you can't commit it anywhere else, like a loan or an investment. That means $1.4 Trillion comes into the bank and the bank has to sit on it.

That means the banks can't make loans to anybody. It can't use the money for itself to provide the income to provide for staff or electricity. A 100% system is identical to putting your money in a can and burying it in the back yard.

As for the rest of the plan, sorry, more problems. Print up 14 trillion dollars and what happens to the value of the dollar? It falls drastically, that means inflation goes sky high. Every country in the world will run to dump dollars and the value of the dollar will fall even further. Dollars will stop being the world reserve currency.

We print a ton of dollars and hope to find people who will give up their interest bearing bonds for non-interest bearing. Why would they do that? Besides our debt isn't entirely to foreigners. As you say $10 trillion is owed to our citizens. What happens when we tell Social Security recipients that they only get half (or less) of their purchasing power because we devalued the dollar. Same with food stamps or any other program.

It will cost the American people a ton. Every dollar they have in their wallets or in savings will suddenly be worth 10 cents, or whatever the new value of the dollar is. (I'm too lazy to figure it out.)

Sorry, I'm getting tired. Someone else can finish the explanation of why 100% and monetarization of the entire debt won't work.

I think the intent is for the banks to only be able to lend a portion of their deposits rather than 10 times their deposits.

As for inflation, you do really think cutting banks lending potential by 10 times is going to cause inflation? They are the ones that cause inflation by lending 10 times the money that actually exists.

reply to post by sligtlyskeptical

Dear sligtlyskeptical,

Thanks, good questions.

If they are allowed to lend a portion of their deposits, then it's a fractional reserve system, by definition. If they can lend out 20% of their deposits, then it's an 80% reserve system. The problem is finding the right number. The banks only income is whatever interest they can make on their depositor's money. (Unless you're counting bailouts.) They have to sit on enough money to cover all their customer's need for cash.

As for inflation, you do really think cutting banks lending potential by 10 times is going to cause inflation? They are the ones that cause inflation by lending 10 times the money that actually exists.

No, I think printing 14 trillion dollars out of the air is going to cause inflation.

With respect,
Charles1952