The Implications Of Owing Interest On Our Own Money Supply

Our monetary system is debt based.  It is unsustainable by design.  At the root of the problem is this simple fact:  Every dollar in existence, either paper or digital, is created by the Fed.  The Fed has monopoly power over money creation.  When a dollar is created, the Fed creates it from thin air.  The Fed hands the dollars to the US Treasury. The US Treasury in exchange for this dollar gives the Fed a U.S. bond for representing 1 dollar of debt PLUS INTEREST.

And the "plus interest" is the kicker.  That's where the insanity resides.  Every year the goverment pays the Fed interest owed on the money supply.  Think of it as a minimum payment on a credit card balance.  A portion of all taxes collected annually goes right to the Fed for the priviledge of letting us use the Fed's paper money.  So when you boil it down, the Fed gives us paper to use, and we give them in return our labor, our "money".  Basically a portion of our lives in return.  Like it or not we are enslaved.

We are at the moment in American history where the debt in proportion to all taxes collected is about to "hockey stick" if you were looking at a graph, and consume an exponentially increasing portion of the Federal Budget.  What does this mean for us?  Less money for entitlements.  Less money for social security.  Less money for medicaid.  Less money to repair roads and bridges.  At some point the total taxes collected number will be overtaken by the minimum payment amount owed.  No amount of money printing can stop this process.  In fact, the faster money is printed, the faster we approach the point where the entire thing falls apart in an inflationary spiral that cannot be escaped. 

My final analysis is that the US dollar will die a death from inflation combined with a total loss of confidence from the general public in the dollar.  Noone knows when, but it is mathematically provable that the dollar will die in this manner.  It has to.  It was born to do this, and only this.  Google search "Modern Money Mechanics".  This creation was the origin of our current monetary system.  "Modern Money Mechanics" is a genius and diabolical method of silently transferring wealth and control from the masses to the very most wealthy. 

The average life span of a fiat currency system is 40 years.  Fiat meaning, money that is not redeemable for a commodity. Nixon cut all ties between the dollar and metal in 1971.  We are in our 40th year of fiat here in the United States.  Conclude from this what you will.