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The History Of American Debt (And What Has Changed)
The Band Of Patriots ^ | August 8th, 2011 | Matthew Monos

Posted on 08/09/2011 8:26:21 AM PDT by orthodoxyordeath

If you've been watching the news today, you know the stock markets are plunging. The markets have only been open about four hours, but the DOW has already plunged over 300 points, update, make that over 600 points.. Everyone knows this is because Standard and Poor downgraded the credit rating of the USA from AAA to AA+. Add in the fact that they downgraded the credit of institutions such as Freddie Mac and Fannie Mae for being too reliant on government (shocker!), are mulling downgrades of Britain and France, and said they might downgrade the USA again in a few months if the situation doesn't improve, and we're looking at financial free-falls worldwide.

This of course has prompted a renewed interest in American debt, since the S&P said that was the main factor in this downgrade. In fact this morning John Chambers, Managing Director of S&P, said that all the countries that regained their AAA credit rating after being downgraded took on fiscal reforms to reduce their debt to GDP. According to Paul Krugman (an idiot if there ever was one), we're fine financially, because we can still borrow and wouldn't you know it, Alan Greenspan thinks we can just print more money! One of our readers asked us, "WHY does America need to 'borrow' money from anyone?" Well, the simple answer, is that we live outside our means. Therefore, we need money to sustain ourselves. However, that has not always been the case for our debt.

First, we need to understand the history of our debt, and what has changed. American debt started to exist before this country even was born. Starting in 1775, a year before the country was officially founded, the USA started borrowing money.

(Excerpt) Read more at thebandofpatriots.com ...


TOPICS: Business/Economy; Government; History; Politics
KEYWORDS: borrowing; capitalism; debt; laissezfaire
I know people hate excerpts, but the original post is actually far too long to post. If the topic interests you, check it out, a lot of research went into this piece.
1 posted on 08/09/2011 8:26:24 AM PDT by orthodoxyordeath
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To: orthodoxyordeath

Very well done. Saving for further reflection.


2 posted on 08/09/2011 9:00:40 AM PDT by kallisti ("fall mountains, just don't fall on me...")
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To: orthodoxyordeath
Great post. Thanks.

The author has suggestions at the end. They're darn good.

What needs to be done now, but will not possibly happen if at all until 2013 is an economic and political BIG BANG.

Disestablish EPA, DOE, Dept of Ed, etc.

Send Balanced Budget Amendment w/spending limit to the States.

Voucherize Medicare if kept alive at all.

Roll back Social Security payout to equal payroll taxes collected.

The biggest bang is to disestablish all federal courts except the Supreme Court and start over. No need for impeachments, keep paying the unemployed judges. Man the courts with federalist society, Clarence Thomas judges.

3 posted on 08/09/2011 9:09:06 AM PDT by Jacquerie (Like all parasites, socialism eventually kills its hosts.)
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To: Jacquerie

Don’t leave out the CFPB housed in the Fed...it is a direct and imminent threat too, lurking behind banking and consumer finance “protection” issues:

The CFPB, newly established and housed within the Fed, taken from the standpoint of representing unprecedented NATIONALIZATION of our very population, is an existential threat in progress to our freedom.

Will not the CFPB, on close examination of how each citizen will be monitored, data collected, managed at the micro-level including integrated healthcare, IRS, DHS, ATF, Education Dept., student loans etc., and, through the Director’s integration of several hundred Federal Agencies concentrating the full powers of Fed Govt on each citizen every second of the day as desired, essentially be the NATIONALIZATION and complete capture of the entire population? Breathtaking idea.

Just think of the CFPB as the “Big Corral”. Congress has turned us over to the Fed through the instrumentality of the CFPB, washed their hands of being accountable to the voters, and granted the Fed full management of the voters in the name of “consumer protection” and....safer banking.
The CFPB is all encompassing in the scope of its allowed powers and powers-to-be.

We are “buying the Brooklyn Bridge” with this Congressional ploy, at the Fed’s request/demand to Congress, unprecedented in scope and purpose.

The govt has nationalized the mortgage industry and now it is nationalizing us, our very bodies, under the control of the Fed, which funds the entire operation, thus eliminating Congressional oversight function. THere is no effective accountability. The CFPB is of, by and for the Fed Reserve. The Fed and the Executive Branch now have a nationalized, federalized population housed in a single body for ubiquitous extension of control, completely separate from the Congress. Complete voter disenfranchisement has occurred, quietly, disquised as “consumer protection”. Think about it.

CFPB, under the banner of “Consumer Financial Protection” housed in a centrally controlled, delegated-to-the-Fed Res, seems to deal just with banking and mortgage issues and the issuance of Federal Reserve approved financial instruments...no more private financial instruments. CFPB is going to deal with ALL events and issues of one’s daily life! This has not been covered in Sen and House hearings or by the media, which have focused on banking and mortgage issues only, not on the Bureau taking over full control of one’s daily life and every move and click on one’s computer board and every micro-financial transaction by the minute if desired. The disappearance of all privacy and the establishment of total transparency in ones’ life for government use, while govt. becomes more opaque, is embodied in the CFPB.

Abolishing the FED will certainly take the CFPB with it. THe only thing remaining for the Fed Reserve housed-and- funded CFPB to get into operation, which will take a couple of years to gear up, is the appointment of a Director...the Reps are holding up the appointment....holding the appointment to infinity is necessary. The CFPB is a big cell containing 311 million persons...and the appointment of a Director is in effect the closing and locking of the cell door. One could think of the movie “The Shawhank Redemption” and the Director portrayed therein....except the “Shawhank Prison” has, 311 million prisoners in this case.

NATIONALIZATION of the entire population is not a prism through which the CFPB is being viewed. People better get on the “stick” and look at the CFPB from this point of view to fully understand it and it’s implications.

The Congress and the banks created the derivatives and mortgage problems that have led to the nationalization of the mortgage industry in the US with even special “protective” mortgage instruments being designed to make mortgage securitizations safer. Instead of subprime, tranches of MB-Securities, the MBSs will really be triple A with daily monitoring capability of mortgage holders thru the CFPB, with control and monitoring of everyones’ personal bank accounts through the CFPBs’ plans. Credit derivative, credit default swaps, tranches of MBS’s can continue on and expand even further, thus guaranteeing the opaque shadow banking system of credit derivatives, now totalling over a Quadrillion dollars worldwide.

In time, as the CFPB gears up, expect direct extraction of penalties, fines, taxes originating within the country and without the country (climate change tax, anyone?) to occur. No tax returns would be necessary at all...extraction could eventually occur at any time interval desired...the CFPB is the tool that can/will allow this to be accomplished.

The problem with abolishing the Fed is what the “competent” Congress would actually replace it with. Now is no time to place Congress on a “learning curve”, having been in abdication of its duties since 1913.

The Congress is doing its best to convince us that Congressional control of our monetary and fiscal issues should not be in their hands or the Feds either. They are making the case for the collapse of the dollar and a new supranational currency system.

So, the only “solution” present to the globalists in Congress, is the world banking system, which our enemies demand as well. Our govt. is doing its best to make their demands correct demands in the eyes of the world. In which direction is the currency of the Fed Reserve heading?

Congress must be brought into line and we must not be allowed to be corraled into the CFPB.

When the Money Trust fell out of favor with the public at the turn of the last century, the Money Trust members floated the Fed Reserve, composed of their very selves, through Congress in 1913 as a solution to the publicly perceived Money Trust problem, and morphed it into the Fed Reserve, and here we are today.

The same mechanism is being employed here, with the trust in the Congress and the Fed being eroded in favor of the utopian idea of acceptance of world banking.

This article on abolishing the Fed is a response to the ineffectiveness of the Fed, a private corporation, in handling our monetary matters, and calls for the abolishing of the Fed.

Do you trust Congress to replace it with competent governance? Congress has, to our detriment, allowed to advance into private business arenas and fiscal duties, all catastrophic in the end. Best to start by focusing on the CFPB and abolishing it as it is a direct threat at this time, before a Director is appointed, and next replace utopian minded and corrupt politicians with better nationalistic ones, and go from there.


4 posted on 08/09/2011 9:33:45 AM PDT by givemELL (Does Taiwan eet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)
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To: givemELL

Agree, and add Obamacare to the list.


5 posted on 08/09/2011 9:43:20 AM PDT by Jacquerie (In 2012 the homoerotic rat party will look back on 2010 as a good election year.)
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To: Jacquerie

The CFPB integrates all of Obamacare, and its 157 agencies+ to be integrated by the Director of the CFPB into all data, management, consumer behavior modification (”attitude adjustments”) aslo. You are quiet correct in spades.


6 posted on 08/09/2011 10:18:37 AM PDT by givemELL (Does Taiwan eet the Criteria to Qualify as an "Overseas Territory of the United States"? by Richar)
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To: givemELL
Related, but a little off topic is a law passed last year in FL.

The Republican Legislature and Governor passed a law that requires regulatory agencies to get approval from both houses of the legislature before they can implement any rule that could cost Floridians $1 Million or more over five years. Needless to say, the enviros and social justice types are still pulling their hair out.

Imagine if all diktats from the Marxists in the multitudes of federal agencies had to get prior Congressional approval.

It would stop the Obama agenda cold.

7 posted on 08/09/2011 10:35:04 AM PDT by Jacquerie (Obamacare, the Enabling Act of 2010.)
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To: Jacquerie

I hadn’t heard about that. That’s absolutely fantastic.


8 posted on 08/09/2011 12:36:16 PM PDT by orthodoxyordeath
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