How much do you owe, debt slave?

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Silver
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How much do you owe, debt slave?

Post by Silver »

http://dollarcollapse.com/interest-rate ... milestone/" onclick="window.open(this.href);return false;

2017’s Real Milestone (Or Why Interest Rates Can Never Go Back To Normal)
JANUARY 24, 2017 5 COMMENTS

Forget about NAFTA or OPEC or TPP or crowd size or hand size or any other acronym or stat or concept that obsesses the financial press these days. Only two numbers actually matter.

The first is $20 trillion, which is the level the US federal debt will exceed sometime around June of this year. Here’s the current total as measured by the US Debt Clock:
Debt-clock-Jan2017.jpg
Debt-clock-Jan2017.jpg (12.18 KiB) Viewed 3447 times
To put $20 trillion into perspective, it’s about $160,000 per US taxpayer, and exists in addition to the mortgage, credit card, auto, and student debt that our hypothetical taxpayer probably carries. It is in short, way too much for the average wage slave to manage without some kind of existential crisis.

It’s also way more than it used to be. During his tenure, president George W. Bush (2000 – 2008) nearly doubled the government’s debt, which is to say his administration borrowed as much as all its predecessors from Washington through Clinton combined. At the time this seemed like a never-to-be-duplicated feat of governmental profligacy. But the very next administration topped it, taking the federal debt from $10 trillion to the soon-to-be-achieved $20 trillion. And the incoming administration apparently sees no problem with continuing the pattern.

The other meaningful number is 6.620. That’s the average interest rate the US government paid on its various debts in 2000, the year before the great monetary experiment of QE, ZIRP and all the rest began. When talking heads at the Fed and elsewhere refer to “normalizing” interest rates they’re proposing a return to this 6% average rate.

But of course the last time that rate prevailed our debts were just a little lower. Run the numbers on today’s obligations and you get, well, let’s see:

$20 trillion x 6% = $1.2 trillion a year in interest expense. To put that in perspective…

It’s $15,000 a year per family of four, or about a fourth of what the typical American family earns.

It’s 31% of the federal budget, which would mean massive cuts in every other spending program.
The conclusion: It can’t happen without causing one of the following:

Government spending cuts and/or tax increases that impose Greek-style austerity on Americans who won’t respond well to their sudden demotion to Third World status.

A new round of monetary experiments involving the “forgiveness” of the government’s debts, financed with newly-created dollars. This will work – as long as dollars remain universally accepted as a store of value. History offers no examples of such a thing.

An overt effort to devalue the dollar, with the goal of paying the interest in full, but (again) with newly- created, much-less-valuable currency.
The resulting dilemma: If we hope to live within our means interest rates can never be allowed to rise. But if interest rates don’t rise, the Fed is forced to create a tsunami of new dollars to keep rates low, and must take its chances with inflation, currency war, crack-up boom, and all the other black swans that live in the land of monetary excess.

Which is why the sound money community keeps harping on gold. All the politically-acceptable policy options have inflation/devaluation at their core, and those things are always and everywhere great for real assets.

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Original_Intent
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Re: How much do you owe, debt slave?

Post by Original_Intent »

Thanks for posting, I wish there was some way to make this more visible to everyone, and help them understand the consequences.

This is WWIII staring us in the face.

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Durzan
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Re: How much do you owe, debt slave?

Post by Durzan »

First off, the vast majority of US National Debt is actually held by the PEOPLE OF THE UNITED STATES ITSELF... Thats right bros... were the primary creditors of our government!

The second major creditor is China... and they hold a lot.

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

Durzan wrote:First off, the vast majority of US National Debt is actually held by the PEOPLE OF THE UNITED STATES ITSELF... Thats right bros... were the primary creditors of our government!

The second major creditor is China... and they hold a lot.
Could you explain what you mean instead of flippantly repeating something you've heard and now posted without researching?

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Original_Intent
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Re: How much do you owe, debt slave?

Post by Original_Intent »

I would also like to hear the basis for that.

JohnnyL
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Re: How much do you owe, debt slave?

Post by JohnnyL »

Yes, we are the creditors. That is where the blow will come to the American people.

And the title of the thread is what one might be asked before being taken to debtors prison.

The best way: this "interest" is absolute nonsense. Get rid of the fed.

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

JohnnyL wrote:Yes, we are the creditors. That is where the blow will come to the American people.

And the title of the thread is what one might be asked before being taken to debtors prison.

The best way: this "interest" is absolute nonsense. Get rid of the fed.
At least you don't think that a national debt mostly owned by US citizens is a good thing.

I agree that eliminating the Fed is the best idea. However, at this late date it will be extremely painful. Austerity and war will be forced upon us.

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

President Ezra Taft Benson
Pay Thy Debt, and Live

In the book of Kings we read about a woman who came weeping to Elisha, the prophet. Her husband had died, and she owed a debt that she could not pay. The creditor was on his way to take her two sons and sell them as slaves.

By a miracle Elisha enabled her to acquire a goodly supply of oil. Then he said to her: “Go, sell the oil, and pay thy debt, and live thou and thy children of the rest.” (See 2 Kgs. 4:1–7.)

“Pay thy debt, and live.” How fruitful these words have ever been! What wise counsel they are for us today!

https://www.lds.org/ensign/1987/06/pay- ... e?lang=eng" onclick="window.open(this.href);return false;
more at the link...

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Toto
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Re: How much do you owe, debt slave?

Post by Toto »

Odious debt

From Wikipedia, the free encyclopedia

In international law, odious debt, also known as illegitimate debt, is a legal doctrine that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion.

https://en.wikipedia.org/wiki/Odious_debt

I say let the gang of 535 pay it.

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

Toto wrote: March 2nd, 2017, 9:58 am Odious debt

From Wikipedia, the free encyclopedia

In international law, odious debt, also known as illegitimate debt, is a legal doctrine that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion.

https://en.wikipedia.org/wiki/Odious_debt

I say let the gang of 535 pay it.
Great idea, right up there with sliced bread only not likely to be implemented because the gang of 535 gets to make rules about what the gang of 535 must and must not do.

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Toto
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Re: How much do you owe, debt slave?

Post by Toto »

Edwin Vieria Jr. explains it better that I ever could:

Why, though, should average Americans accept and assume responsibility for the gargantuan profligacy represented by the predicted $65.9 trillion shortfall in the fiscal gap? After all, much—perhaps even most—of this amount has been and will be incurred for unconstitutional programs and expenditures. Therefore, no matter its source in supposed statutes of Congress, implemented by the President and approved by the Judiciary, and no matter how large it may be, that unconstitutional increment is not a legitimate obligation of the United States at all, and cannot legally be imposed by the General Government, or its supposed creditors, on We the People. As the Constitution states, “[n]o Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.” Article I, Section 9, Clause 7. And no “Appropriations” can be “made by Law” if the statutes supposedly authorizing them violate the Constitution. Article VI, Clause 2. So, the parties liable in justice to make good on these unconstitutional obligations are: first, the thieves—that is, the politicians, bureaucrats, and judges who originally arranged for or permitted the funds to be stolen; and, second, the receivers of the stolen goods—that is, the special-interest groups that have gorged on these payoffs in the recent past and will continue to do so in the near future.

And he also suggest the legal framework we can use to remedy the problem:

For, as the Declaration of Independence proclaims, under such circumstances “it is the [ people’s] right, it is their duty, to throw off such Government, and to provide new Guards for their future security”. And the Declaration of Independence is still very good law in America.

Furthermore he writes:

One reason why patriotic Americans are accomplishing precious little in reasserting control over their country, while the Establishment steadily advances its agenda on almost all fronts, is that patriots are not taking advantage of their overwhelming numerical superiority in the places where they can best bring it to bear. Instead of joining together for effective—indeed, potentially unstoppable—political, and particularly legislative, action in favorable venues at the State and Local levels, all too many of them are sitting out the contest as mere spectators.

But if the constitution won’t be saved from Washington D.C. as Benson suggested, perhaps it could be done from Utah County. There’s some folks down there who are actually working on it. :D

freedomforall
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Re: How much do you owe, debt slave?

Post by freedomforall »

I owe the Government not one penny above that imposed as taxes on autos, food and other staples, and property taxes (rent) because I cannot own the land under and around my house without Allodial Title, yet my mortgage is paid in full. All the crap Government spends money on to succeed in the own interests and agenda is on them, even after the stole my earnings each week while employed. It's called legal plunder. If people are so darned afraid of having war in an effort to bring back freedom and liberty...they don't really want it. The same thing holds true in that if people don't know their rights, they have none. Then they become puppets to the puppet masters. Then we all can slide right into the hands of the NWO and become slaves without even a whimper. Oh, and then welfare, and gov freebies come to a screeching halt. After that, genocide and other forms of killing people.

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Toto
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Re: How much do you owe, debt slave?

Post by Toto »

I only pay taxes that I am lawfully required to pay. I'm not liable for the income tax and don't file 1040 forms. Not so sure about allodial title, but I was elected Salt Lake County Recorder which would have put me in charge of the records. But I didn't accept the nomination because I was participating in the insurrection of the Federal Reserve and couldn't be faithful to the Oath of Office.

Cliff High had something to say along these lined I just picked up on tonight:

No one in Russia lost their house when their system collapsed because the state owned them all. Here we’ve got a situation where the banks own everything and the Federal Reserve claims to own 89% of all the mortgages in the united states. So if we can get rid of the Federal Reserve well maybe 89% of the mortgages simply disappear and we’ll be that much better off. We don’t need to owe the Federal Reserve any money, we don’t need to have a national debt. The national deficit is not our debt, it’s not our trade deficit, it’s what we theoretically or hypothetically owe the Federal Reserve for creating money that we then borrow from them at interest. It’s like, that’s bogus! Let congress create money out of gold and silver we don’t need the Federal Reserve at all. And these days you could even do it electronically. You could have micro payments in gold and silver digitally done and it’s quite trivial. We just have to piggy back on the block chain technology.
--Clif High

https://youtu.be/VZJoo63QaAU?t=1838

In the old days in Utah we used to fund education from natural resources. But nowadays the supposed Federal Government ties up the resources in national monuments and we pay property taxes to teach the children to integrate into a disintegrating society.

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

Toto wrote: March 5th, 2017, 9:29 pm I only pay taxes that I am lawfully required to pay. I'm not liable for the income tax and don't file 1040 forms. Not so sure about allodial title, but I was elected Salt Lake County Recorder which would have put me in charge of the records. But I didn't accept the nomination because I was participating in the insurrection of the Federal Reserve and couldn't be faithful to the Oath of Office.

Cliff High had something to say along these lined I just picked up on tonight:

No one in Russia lost their house when their system collapsed because the state owned them all. Here we’ve got a situation where the banks own everything and the Federal Reserve claims to own 89% of all the mortgages in the united states. So if we can get rid of the Federal Reserve well maybe 89% of the mortgages simply disappear and we’ll be that much better off. We don’t need to owe the Federal Reserve any money, we don’t need to have a national debt. The national deficit is not our debt, it’s not our trade deficit, it’s what we theoretically or hypothetically owe the Federal Reserve for creating money that we then borrow from them at interest. It’s like, that’s bogus! Let congress create money out of gold and silver we don’t need the Federal Reserve at all. And these days you could even do it electronically. You could have micro payments in gold and silver digitally done and it’s quite trivial. We just have to piggy back on the block chain technology.
--Clif High

https://youtu.be/VZJoo63QaAU?t=1838

In the old days in Utah we used to fund education from natural resources. But nowadays the supposed Federal Government ties up the resources in national monuments and we pay property taxes to teach the children to integrate into a disintegrating society.
Excellent post. Respect, sir!

freedomforall
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Re: How much do you owe, debt slave?

Post by freedomforall »

Toto wrote: March 5th, 2017, 9:29 pm I only pay taxes that I am lawfully required to pay. I'm not liable for the income tax and don't file 1040 forms. Not so sure about allodial title, but I was elected Salt Lake County Recorder which would have put me in charge of the records. But I didn't accept the nomination because I was participating in the insurrection of the Federal Reserve and couldn't be faithful to the Oath of Office.

Cliff High had something to say along these lined I just picked up on tonight:

No one in Russia lost their house when their system collapsed because the state owned them all. Here we’ve got a situation where the banks own everything and the Federal Reserve claims to own 89% of all the mortgages in the united states. So if we can get rid of the Federal Reserve well maybe 89% of the mortgages simply disappear and we’ll be that much better off. We don’t need to owe the Federal Reserve any money, we don’t need to have a national debt. The national deficit is not our debt, it’s not our trade deficit, it’s what we theoretically or hypothetically owe the Federal Reserve for creating money that we then borrow from them at interest. It’s like, that’s bogus! Let congress create money out of gold and silver we don’t need the Federal Reserve at all. And these days you could even do it electronically. You could have micro payments in gold and silver digitally done and it’s quite trivial. We just have to piggy back on the block chain technology.
--Clif High

https://youtu.be/VZJoo63QaAU?t=1838

In the old days in Utah we used to fund education from natural resources. But nowadays the supposed Federal Government ties up the resources in national monuments and we pay property taxes to teach the children to integrate into a disintegrating society.
Allodial title constitutes ownership of real property (land, buildings and fixtures) that is independent of any superior landlord. Allodial title is related to the concept of land held "in allodium", or land ownership by occupancy and defense of the land. Historically, much of land was uninhabited and could therefore be held "in allodium".[1] In the modern developed world, true allodial title is only possible for nation state governments.[1] Although the word "allodial" has been used in the context of private ownership in a few states of the United States, this ownership is still restricted by governmental authority; the word "allodial" in these cases describes land with fewer but still significant governmental restrictions.

Likewise, if a person walks into a car dealership and pays cash for a new car, he or she can ask for the Manufacturers Certificate/Statement of Origin. The car becomes the property of the buyer and no taxes or registration have to be paid on a regular basis.

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Toto
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Re: How much do you owe, debt slave?

Post by Toto »

Alrighty then. Sounds like when Utah opens up a depository https://www.soundmoneydefense.org/news/ ... ory-000083 so I can transact in silver and gold coin, I should run for Governor and straighten out this mess!

The position is currently vacant because nobody in the state has filed an oath of office as required by law. The last Governor passed away, so the office is vacant. We could have appointed Richard Mack Governor when he was running, but he didn’t take the deal. He has probably done more good than if he had though, because the vast majority were stuck in the matrix at the time. But maybe he could help straighten out the sheriffs, I could re-establish a constitutional militia, the militia would be in charge of the depository, and the sheriff could kick the Feds out of the State.

I didn’t realize, in my ignorance, I was paying taxes on my ride that I wasn't liable for.

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ithink
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Re: How much do you owe, debt slave?

Post by ithink »

Toto wrote: March 5th, 2017, 9:29 pm I only pay taxes that I am lawfully required to pay. I'm not liable for the income tax and don't file 1040 forms. Not so sure about allodial title, but I was elected Salt Lake County Recorder which would have put me in charge of the records. But I didn't accept the nomination because I was participating in the insurrection of the Federal Reserve and couldn't be faithful to the Oath of Office.

Cliff High had something to say along these lined I just picked up on tonight:

No one in Russia lost their house when their system collapsed because the state owned them all. Here we’ve got a situation where the banks own everything and the Federal Reserve claims to own 89% of all the mortgages in the united states. So if we can get rid of the Federal Reserve well maybe 89% of the mortgages simply disappear and we’ll be that much better off. We don’t need to owe the Federal Reserve any money, we don’t need to have a national debt. The national deficit is not our debt, it’s not our trade deficit, it’s what we theoretically or hypothetically owe the Federal Reserve for creating money that we then borrow from them at interest. It’s like, that’s bogus! Let congress create money out of gold and silver we don’t need the Federal Reserve at all. And these days you could even do it electronically. You could have micro payments in gold and silver digitally done and it’s quite trivial. We just have to piggy back on the block chain technology.
--Clif High

https://youtu.be/VZJoo63QaAU?t=1838

In the old days in Utah we used to fund education from natural resources. But nowadays the supposed Federal Government ties up the resources in national monuments and we pay property taxes to teach the children to integrate into a disintegrating society.
Nearly nobody get's this right, and least of all among Mormons. At least, that is my experience in the last 17 years. I have promulgated the solution myself publically when I ran as an independent for federal office twice, a move which put me in direct contact with a handful of people I would otherwise have never met. All agreed with me and my research, which is that the answer is that debt itself is not bad. Examine the debt for what it is, what makes it up, even the majority of it up, and you will see what the real problem is. The answer is not to turn to gold or silver, that is a trap. The Clif High guy almost get's it right, but almost isn't good enough, it has to be done right or not at all.

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Toto
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Re: How much do you owe, debt slave?

Post by Toto »

I was just thinking, (I know, scary) if the DEBT PER CITIZEN is $61,423 monetary units of No Thing and the FRN TO SILVER RATIO NOW IS $851 monetary units of No Thing to 371.25 grains Ag (one Dollar), my supposed fair share is about 93.32 Dollars. I have enough Dollars to cover my supposed fair share. But why would I want to do that?

Because the supposed US NATIONAL DEBT is expressed in monetary units of No Thing, a mind created reality, the supposed national debt is a fiction of the imagination. But if you know how to make the transaction, the supposed US NATIONAL DEBT could be paid with one Dollar.

(Snicker....I could buy out the Federal Reserve :)) )

So I figure my supposed fair share the supposed NATIONAL DEBT is 324,673,480 (US POPULATION) divided by 371.25 Grains AG (Dollar) which makes my fair share .00000114345 grains of pure fine silver.

Reference: http://www.usdebtclock.org/

Where do I pay up? :D

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

I miss the Thank button.

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Toto
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Re: How much do you owe, debt slave?

Post by Toto »

Hey freedomforall, I just stumbled across this quote about allodial title. Congressman James Traficant, Jr. read this into the Congressional Record on March 17, 1993:

“Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens or mortgages until the Federal Reserve Act (1913) “hypothecated” all property within the federal United States to the Board of Governors of the Federal Reserve, in which the Trustees (stockholders) held legal title. The U.S. citizen (tenant, franchisee) was registered as a “beneficiary” of the trust via his/her birth certificate. In 1933, the federal United States hypothecated all of the present and future properties, assets and labor of their “subjects”, the 14th Amendment U.S. citizen, to the Federal Reserve System.”

It reminded me of another quote by Thomas Jefferson...

"If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied."

I guess we're just a bunch of homeless slaves nowadays.

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

Toto wrote: March 12th, 2017, 5:11 am Hey freedomforall, I just stumbled across this quote about allodial title. Congressman James Traficant, Jr. read this into the Congressional Record on March 17, 1993:

“Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens or mortgages until the Federal Reserve Act (1913) “hypothecated” all property within the federal United States to the Board of Governors of the Federal Reserve, in which the Trustees (stockholders) held legal title. The U.S. citizen (tenant, franchisee) was registered as a “beneficiary” of the trust via his/her birth certificate. In 1933, the federal United States hypothecated all of the present and future properties, assets and labor of their “subjects”, the 14th Amendment U.S. citizen, to the Federal Reserve System.”

It reminded me of another quote by Thomas Jefferson...

"If the American people ever allow the banks to control issuance of their currency, first by inflation and then by deflation, the banks and corporations that grow up around them will deprive the people of all property until their children will wake up homeless on the continent their fathers occupied."

I guess we're just a bunch of homeless slaves nowadays.
Toto,
In connection with your last comment about us being homeless (debt) slaves, as this thread is exploring, I give you the following:

rentier
[rahn-tyey]
noun, plural rentiers [rahn-tyey] (Show IPA). French.
1.
a person who has a fixed income, as from lands or bonds.

Contemporary Examples
Next, add the vices of a rentier state: laziness, irresponsibility, a sense of entitlement, and ignorance.

Historical Examples
The one who has a perpetual income from bonds or rents is called a rentier.

rentier
noun
1.
a person whose income consists primarily of fixed unearned amounts, such as rent or bond interest
(as modifier): the rentier class

The foregoing was from http://www.dictionary.com/browse/rentier?s=t

So we, who own no real estate, pay rent to our Masters while they enjoy a life of luxury. Kinda sticks in your craw, don't it?

Regarding the word hypothecate, in Spanish the word hipoteca is mortgage and can be used as the word for debt.

If we simply recall the used car dealer sign so common previously, "We carry the note." and read the words on out money: Federal Reserve Note, we can easily understand that we are slaves to them. We owe them. They own us.

That's why I do alot of begging around here asking members to convert their Federal Reserve Hiney wipes to real money. Element 47 is particularly good for everyone.

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Toto
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Re: How much do you owe, debt slave?

Post by Toto »

So we, who own no real estate, pay rent to our Masters while they enjoy a life of luxury. Kinda sticks in your craw, don't it?


Yo....I'm gonna need a fire extinguisher to put these flames out!



GOVERNMENT WARNING

The evolution of present day fascist governments have been proven dangerous to the body politic. Toxic emissions of paper money lead to cancerous like growth that threatens life, liberty, and the pursuit of happiness.

Symptoms of exposure begin with the losing of consciousness followed by the loss of hearing, vision, speech, and ultimately physical control and unnatural death.

Prevention is the preferred method of control and the protocols can be found in the U.S. Constitution. The use of a Ballot Box is the primary method of administration.

Allopathic methods of treatment have shown to be effective to treat symptoms, but have undesirable side effects and unintended consequences. Therefore, a more homeopathic approach is preferable to eliminate pathogens. Infusions of silver and gold have shown to be effective with few side effects, however modern pathogens have evolved that are resistant to proven methods of prevention and control, and more aggressive methods of treatment such as lead from the ammo box may be required and should be administered by a well regulated militia to restore the body politic to a condition of homeostasis and facilitate life into the future.

Advanced protocols have shown promise for extending life into eternity, however patient compliance continues to be a primary obstacle.

It is a violation of natural law to remove this warning.

Failure to follow these natural law protocols can lead to internment in a facility lacking air conditioning and fire protection, and many perish from heat exhaustion.



OK, I'm feeling much better after getting that off my chest.

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

http://www.zerohedge.com/news/2017-03-1 ... dy-explode

$21,714 For Every Man, Woman And Child In The World - This Global Debt Bomb Is Ready To Explode

by Tyler Durden
Mar 13, 2017 8:13 AM
debtbomb.jpg
debtbomb.jpg (25.48 KiB) Viewed 1826 times
"According to the International Monetary Fund, global debt has grown to a staggering grand total of 152 trillion dollars. Other estimates put that figure closer to 200 trillion dollars, but for the purposes of this article let’s use the more conservative number. If you take 152 trillion dollars and divide it by the seven billion people living on the planet, you get $21,714, which would be the share of that debt for every man, woman and child in the world if it was divided up equally.

So if you have a family of four, your family’s share of the global debt load would be $86,856.

Very few families could write a check for that amount today, and we also must remember that we live in some of the wealthiest areas on the globe. Considering the fact that more than 3 billion people around the world live on two dollars a day or less, the truth is that about half the planet would not be capable of contributing toward the repayment of our 152 trillion dollar debt at all. So they should probably be excluded from these calculations entirely, and that would mean that your family’s share of the debt would ultimately be far, far higher.

Of course global debt repayment will never actually be apportioned by family. The reason why I am sharing this example is to show you that it is literally impossible for all of this debt to ever be repaid.

We are living during the greatest debt bubble in the history of the world, and our financial engineers have got to keep figuring out ways to keep it growing much faster than global GDP because if it ever stops growing it will burst and destroy the entire global financial system.

Bill Gross, one of the most highly respected financial minds on the entire planet, recently observed that “our highly levered financial system is like a truckload of nitro glycerin on a bumpy road”.

And he is precisely correct. Everything might seem fine for a while, but one day we are going to hit the wrong bump at the wrong time and the whole thing is going to go KA-BOOM.

The financial crisis of 2008 represented an opportunity to learn from our mistakes, but instead we just papered over our errors and cranked up the global debt creation machine to levels never seen before. Here is more from Bill Gross…

My lesson continued but the crux of it was that in 2017, the global economy has created more credit relative to GDP than that at the beginning of 2008’s disaster. In the U.S., credit of $65 trillion is roughly 350% of annual GDP and the ratio is rising. In China, the ratio has more than doubled in the past decade to nearly 300%. Since 2007, China has added $24 trillion worth of debt to its collective balance sheet. Over the same period, the U.S. and Europe only added $12 trillion each. Capitalism, with its adopted fractional reserve banking system, depends on credit expansion and the printing of additional reserves by central banks, which in turn are re-lent by private banks to create pizza stores, cell phones and a myriad of other products and business enterprises. But the credit creation has limits and the cost of credit (interest rates) must be carefully monitored so that borrowers (think subprime) can pay back the monthly servicing costs. If rates are too high (and credit as a % of GDP too high as well), then potential Lehman black swans can occur. On the other hand, if rates are too low (and credit as a % of GDP declines), then the system breaks down, as savers, pension funds and insurance companies become unable to earn a rate of return high enough to match and service their liabilities.
There is always a price to be paid for going into debt. It mystifies me that so many Americans seem to not understand this very basic principle.

On an individual level, you could live like a Trump (at least for a while) by getting a whole bunch of credit cards and maxing all of them out.

But eventually a day of reckoning would come.

The same thing happens on a national level. In recent years we have seen examples in Greece, Cyprus, Zimbabwe, Venezuela and various other European nations.

Here in the United States, more than 9 trillion dollars was added to the national debt during the Obama years. If we had not taken more than 9 trillion dollars of consumption and brought it into the present, we would most assuredly be in the midst of an epic economic depression right now.

Instead of taking our pain in the short-term, we have sold future generations of Americans as debt slaves, and if they get the chance someday they will look back and curse us for what we have done to them.

Many believe that Donald Trump can make short-term economic conditions even better than Obama did, but how in the world is he going to do that?

Is he going to borrow another 9 trillion dollars?

A big test is coming up. A while back, Barack Obama and the Republican Congress colluded to suspend the debt ceiling until March 15th, 2017, and this week we are going to hit that deadline.

The U.S. Treasury will be able to implement “emergency measures” for a while, but if the debt ceiling is not raised the U.S. government will not be able to borrow more money and will run out of cash very quickly. The following comes from David Stockman…

The Treasury will likely be out of cash shortly after Memorial Day. That is, the White House will be in the mother of all debt ceiling battles before the Donald and his team even see it coming.

With just $66 billion on hand it is now going to run out of cash before even the bloody battle over Obamacare Lite now underway in the House has been completed. That means that there will not be even a glimmer of hope for the vaunted Trump tax cut stimulus and economic rebound on the horizon.
Trump is going to find it quite challenging to find the votes to raise the debt ceiling. After everything that has happened, very few Democrats are willing to help Trump with anything, and many Republicans are absolutely against raising the debt ceiling without major spending cut concessions.

So we shall see what happens.

If the debt ceiling is not raised, it will almost certainly mean that a major political crisis and a severe economic downturn are imminent.

But if the debt ceiling is raised, it will mean that Donald Trump and the Republicans in Congress are willingly complicit in the destruction of this country’s long-term economic future.

When you go into debt there are consequences.

And when the greatest debt bubble in human history finally bursts, the consequences will be exceedingly severe.

The best that our leaders can do for now is to keep the bubble alive for as long as possible, because what comes after the bubble is gone will be absolutely unthinkable." (close quote)

Rytui
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Re: How much do you owe, debt slave?

Post by Rytui »

Hi! I`m here to say thank you for this information and the link. Very useful

Silver
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Re: How much do you owe, debt slave?

Post by Silver »

Rytui wrote: March 14th, 2017, 4:49 am Hi! I`m here to say thank you for this information and the link. Very useful
Wow, 4 minutes after joining LDSFF you used your very first post here. That's very kind of you. I hope you have a good time here. I'm the cantankerous old man that is always shoving stuff in other people's faces, but I mean well.

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