The one-day increase for June 30 totaled $165,931,038,264.30 – bigger than the entire annual deficit for fiscal year 2007 and larger than the $140 billion in savings the new health care bill will produce over its first 10 years. The figure works out to nearly $1,500 for every U.S. household, or more than 10 times the median daily household income.
Daily debt calculations jump and fall, and big shifts are common. But all three of the biggest one-day debt increases have occurred under the tenure of President Obama, and all of the top six have been in the past two years – an indication of just how quickly the pace of deficit spending has risen under Mr. Obama and President George W. Bush.
This sort of spending would not be possible without a central bank that can create money out of thin air and loan it to Congress and charge interest on it. And the more money Congress and the Fed create, the more inflation there is, and the less the dollar is worth.
This is exactly what we do not need in the middle of an extreme recession. But until some congressmen get a spine or some voters learn a little more about proper government, it’s an inevitable spiral downward until the next crash.
Returning to the Constitutionally mandated gold standard would quickly put an end to all this irresponsible spending.
via U.S. marks 3rd-largest, single-day debt increase – Washington Times.
Of course, the answer to Roger’s unanswered question towards the end there was: They’ll get bailout money from the International Monetary fund (IMF), which is overwhelmingly funded by the United States, via the Federal Reserve banks.
Now, the United States does not have any money either; we are on the verge of bankruptcy also, but the Federal Reserve is able to create money out of thin air and loan it to the Treasury, which can then fund all U.S. operations. Although, in this instance, the Fed is giving itself authorization to print and loan money directly to the IMF in order to keep their brother banks in business and guarantee that they can continue to pay interest on previous loans.
It’s all rather wacky, really. But don’t worry – they have plans to replace it with a “new and improved” system, which is really just the current system with fewer participants: a global banking system and global currency, with a single bank ruling the economies of the world.
Can you imagine?
I say we go back to silver and gold, as required by the Constitution.
Today, while walking through the grocery store parking lot, I noticed a penny on the ground. I picked it up, spun it in my fingers, observed the scratches in the dark copper, and pondered the value of a penny.
In olden days, our money was made out of metal that had an intrinsic value, and the value of the metal set the value of the money made of it.
Nowadays, the government has produced money in such quantities that it struggles to find metal sufficiently worthless that coins made from it will be at least as invaluable as the coin’s face value.
It parallels the first two Tales of Inflation written about by Les Jones. We are repeating the same monetary follies that corrupt administrations have committed many times before, and yet we refuse to believe that we will suffer the same consequenses they suffered: increasingly severe booms and busts, ballooning national debts, incredibly bloated government, endless war, and eventually, hyperinflation and the collapse of the society.
And to think, reversing the trend would only require trading in our worthless paper currency for gold and silver!
