Matthew Libman wrote:
I tend to agree with many of the forward-thinking viewpoints that are shared on forums like this. However, I feel there is misinformation being circulated regarding the US national debt. The core question that must be answered: What is the national wealth?
Private wealth in the US is almost $80 trillion. But dig deeper: What is the mineral wealth in our national parkland? What are the Rocky Mountains, Mendocino County, and ANWR worth? What is the aggregate oil wealth in public lands? What is the value of the US military in the jungle of international relations?
I argue that the $18 Trillion national debt pales in comparison to the national wealth of the United States. There is no better example of this than the revenue generated from Obama's successful energy exploration campaign.
When you take a look at the massive swaths of valuable land held by the federal government, it becomes clear that the total federally-owned real estate, oil, minerals, etc. within the borders of the USA could be valued in the quadrillions of dollars.
One thing has become increasingly clear to me: the United States HAS debt, but it is really not IN debt.
The purpose of the Federal Reserve is to govern the people through the money supply. The threat of hyperinflation or deflationary depression is exaggerated. The resource wealth of the United States - as well as the large, rich, taxable population - provides a backstop that keeps our currency strong, even in expansionary environments.
I believe this backstop is far more valuable than prior generations' use of precious metal reserves. I concede gold and silver are more tangible, but defining the national wealth by reserves of scarce metals is nothing more than a form of social brainwashing intended to keep resource-rich Americans feeling poor.
Conspiracy theorists and John Birchers who measure the national debt against gold reserves are engaging in monetary child's play. However, the Federal Reserve's ability to spend the past decade in crisis while hiding the money supply (M3) from the American public is brilliant. A brilliant scam that must come to an end in the United States, as it has in central banks throughout Europe and across the globe.
The strength of the dollar in FOREX markets in the wake of QE3 invalidates many conspiracy theories. As a market student and participant, I believe the dollar is legitimately strong and would remain strong through QE4, QE5, and QE6.
Is it time to end the myth of false scarcity? Is the easy answer - a dramatic increase in the debt ceiling to fund the Small Business Administration, Farm Service Agency, and regional banks - the best path for the US economy?
Recently an interesting statistic was released. The USA has fewer corporations today than 40 years ago, despite having three times as many citizens. If "corporations are people," do we just need more "people?"
Or is a multi-decade Japanese-style depression a better way to break the will of American men, break the daughters of the revolution into prostitution, seize American's weapons, and ultimately rejoin the British Crown and join the New/Old World Order?
I ask that question only half-sarcastically, because that appears to be the the intent of the current world order, and the path the United States is headed. Especially if either Hillary "Forester de Rothschild-RHODam" Clinton, or Jeb "Lehman is now Barclays" Bush are elected president.
This is serious business.
Sure, a new monetary system would be nice. But is a total revolution possible? Perhaps it is time to submit to reality, and finally admit that Reagan was right.
Mine eyes have seen the glory of the coming of a new hashtag.
Matthew Libman Charleston, SC
Your first post is an excellent introduction for yourself into the DTV community here. Greetings and welcome.
As for your topic... I agree with many of your points but I have identified several points that I have somewhat of a contention with. First, your comparison between the inherent wealth of the United States as compared to the functional wealth of the United States is in error. This can be demonstrated by taking into consideration the initial investments necessary to begin mining said minerals combined with mining and production costs and allowing for time. The amount of time necessary to bring productions of said resources to a level of production and sales that would be required to offset the negative effect of the national debt is such that, given the current velocity of debt increase and the current velocity of downturn in demand, the benefits would come long after any chance of rescuing the economy from it's exponentially growing debt and incredibly low money velocity, has passed.
As for your implication that the public and private sector land holdings should be considered as a possible leverage that could offset the debt... are you suggesting that we could sell these resources land to someone? If it is sold to persons or entities within the United States then it is nothing more than a transfer of capital within the economy and will have no effect on the accumulation of or payment into the national debt. Unless you are suggesting that this is leveraged as an equity holding to be put up against a loan, in which case, are we to believe that is some nation or entity calls the loan then we will just give them United States' land or resources, or sell it in order to pay down the debt?
As for your suggestion that the threat of hyperinflation or deflation is a mirage... I would suggest that you do some research in regards to the amounts of US treasury bonds held by foreign nations and entities. If there were even a slight sensation that the US dollar is going to be severely weakened at any time and one of said holders decides to sell their huge US Treasury bond holdings, this would immediately trigger a precipitous drop in the dollar against foreign currencies thereby causing a vicious cycle that has been set up by the extremely controversial quantitative easing programs. There would then be a sudden vanishing of the value of dollar, not through market forces, but rather through a near instant revelation of the non existent value of FIAT currency. The only real reason that the dollar is being held strong on the FOREX is because the entire world economy is in a technical depression and foreign investors have been sheltering in the US dollar. This does not even take into consideration the fact that the strong dollar severely cuts revenue for US exporters and appears to be destabilizing and possibly collapsing the derivatives market. Have you been paying attention to the Baltic Dry Index? This is the proverbial 'canary in the mine'. Money velocity is slowing so much now that it seems almost inevitable that, in the least, a major correction for markets is coming, and most likely a scenario of slight deflation followed by a collapse of derivatives and hyperinflation.
As for your questions in regards to a new monetary system and the possibility for a total revolution... I personally believe that a monetary crisis is at hand and a new monetary system is inevitable. I personally believe that this was and is by design... diabolical and malicious design. In regards to a total revolution... I believe that this is not possible anymore. However idealistic it may be, I believe that this issue has not been overlooked and has been dealt with by the same nefarious group that has engineered this current financial and geopolitical scenario. I believe that they are far more prepared than even we can imagine or know.
I thoroughly enjoyed your post. Thank you for bringing a fresh burst of discussion to these forums. You are very welcome here and I wish you well. I will look forward to your future posts.
Statistics: Posted by Termite — Thu Mar 26, 2015 5:10 pm