The Current Debt Ceiling Debate Is A Complete Fraud

July 31, 2011

Source: BLN

By Lee Rogers
The entire debt ceiling debate that is being covered religiously by the corporate controlled media is nothing more than a fraud surrounded by false ideologies on both sides of the phony political spectrum.  This problem is very simple to solve and it defies logic that not one single person in the corporate controlled media or in government appears willing to discuss a legitimate solution.  Instead, the politicans and the corporate controlled media propagandists prefer to offer fake solutions that keep the current debt based monetary system in place.  The argument is primarily focused around Democrats demanding so-called revenue increases with spending cuts where as the Republicans are demanding no tax increases combined with slightly more aggressive spending cuts.  Although it is true that government spending is wildly out of control and should be drastically cut, neither of these proposals come anywhere close to offering real reform.  They are merely proposals designed to keep the current system in place when the system itself is the real problem.

Currently, there are many sovereign countries that find themselves in an enormous amount of debt.  The reason for this is because of the myriad of central banking systems that operate in conjunction with these nations.  These systems operate off of the concept that all money is debt.  In the case of the United States whenever the government needs to deficit spend they borrow it from the Federal Reserve at interest.  The Federal Reserve provides the United States Treasury Federal Reserve Notes that they create out of nothing in exchange for bonds or debt.  As these Federal Reserve Notes circulate in the economy and get stored in banks, these banks can loan out many times the amount of money that they have on hand.  For many years banks could loan out ten times the amount of cash on hand.  In other words, these banks could simply create additional Federal Reserve Notes out of nothing and force the borrower to pay interest on it based off of the amount of reserves at their disposal.  In this system, all money is debt and the people are taxed so that the government can pay back interest on the debt that originated from the funds that the Federal Reserve simply created out of nothing.  It is nothing more than a scam designed to ensure that the people are enslaved to a system of debt that the government can never pay back. 

As a result, the debate surrounding the debt ceiling, spending cuts and the like is nothing more than smoke and mirrors.  There is no real debate going on as it is just staged theatre between two factions of a one party system.  There is zero difference between both the Republican and Democrat parties as for decades they have continued supporting this phony monetary system that has bankrupted the nation and made the American people debt slaves.  As a sovereign entity the United States Treasury could simply issue its own currency free from the burden of debt or interest payments and use that to pay off its debts.  Abraham Lincoln did this by financing the Civil War through the issuance of Greenbacks.  To reiterate, a sovereign entity does not need to borrow from the Federal Reserve or any other lending institution when it can issue its own currency.  The fact that not one politican or one media pundit has brought up this fact shows that nobody is interested in truly resolving this crisis and are only interested in continuing the status quo. 

The only way this debt problem will ever be truly resolved is if the debt based monetary system that is facilitated through the Federal Reserve is phased out and replaced with a non-debt based monetary system.  Additionally, gold and silver coins should be brought back into active circulation with the U.S. Mint stamping out silver coins with a $50 face value and gold coins with a $2,000 face value.  The reason why they do not circulate now is because the face value of the coins is far less than the actual melt value of the coins.  If a piece of paper can be worth $100 just by the fact that it says $100 on it, there is no reason why the U.S. Mint can't do the same thing with the coins.  If these two ideas were implemented, the debt crisis would soon no longer exist, there would be no reason for excessive taxation and the U.S. government would be able to finance a myriad of programs for the benefit of the American people.

It is hard to say how this manufactured crisis is going to end but with nobody offering any real solutions, it is quite possible this is just another way for the establishment to further weaken the U.S. economy and make the prospect of global government all the more possible.  Either way, it should be very interesting to watch this disgusting circus unfold over the next few days as the politicans and talking heads continue to argue over their fake solutions.