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OPINION: Understanding the ‘raising the debt limit’ scam
Opinion
This is an article of the writer's opinion, and they may not reflect our views. To send a letter to the editor, go to https://www.forsythnews.com/contact-us/submit-letter-editor/.

Last week, President Trump tweeted: “I requested that Mitch M & Paul R tie the Debt Ceiling legislation into the popular V.A. Bill for easy approval. They didn’t…Could have been so easy-now a mess!”

Trump seemed awfully cavalier about raising the debt limit, didn’t he? Isn’t raising the debt limit a really big deal? Isn’t it capitulation by all conservative-minded Americans? Isn’t raising the debt limit tacit approval for the U.S. government to even further exceed its constitutional boundaries?  

Well, maybe. But more importantly, the ‘raising the debt limit’ debate is just another scam on the American people, perpetrated by those we elected to represent us in D.C., another reason they all must be replaced.

The periodic raising of the so-called “debt limit” is simply the natural order of things anytime a national government chooses to carry out its financial responsibilities under a private banking system rather than a truly sovereign, national monetary system. The banking system in our case is that of the Federal Reserve. 

Although it could if it chose, the U.S. government does not create and issue dollars itself. Instead, private Fed member banks do, the largest of which are on Wall Street.  Importantly, however, those banks only issue dollars when someone promises to pay them back, with interest.  And because the banks do not issue the dollars to pay the interest, the only way for a society as a whole to pay back what has already been borrowed is to keep borrowing more and more, and pay off older loans with new, larger loans. 

The entire American economy ($68 trillion in debt), including the U.S. government ($20 trillion in debt) is testimony to that fact. There is no mathematical solution for this system. It cannot be paid off from within. And while the system runs, the bankers get richer and richer, the population gets poorer and poorer, and the government goes more and more in debt. It is a covert, wealth transfer mechanism — the biggest scam in the history of mankind. And as long as the Federal Reserve System stays in operation, it will remain mathematically impossible for America to become a nation other than one that is increasingly encumbered in debt. 

Therefore, the debt of the U.S. government is not necessarily due to excessive government spending. The problem is not the sheer amount the government spends. The problem is what the government spends. And it spends debt disguised as equity, the scam in a nutshell.

The private banks of the Federal Reserve System have been handed the franchise to print money and use it for their own purposes. Now, if private banks can issue dollars from nothing at zero interest cost to themselves, why can’t the U.S. government do the same?  Thomas Edison famously wrote, “If our nation can issue a dollar bond, it can issue a dollar bill.”  

In other words, if the government can print a note out of the air to pay an obligation, it can also create money out of the air for the same purpose. It can; but chooses not to. You are being scammed, friends.

Important to note is that government borrowing and spending is the largest single source of new circulating dollars. As long as this scam runs, if the U.S government does not borrow ever-increasing amounts of currency and spend it into the economy, the economy breaks down due to a lack of liquidity. Because all dollars in circulation are borrowed at interest, if more and more dollars are not borrowed to pay the interest, while leaving enough for the economy to operate, the system crashes. 

So for all who would like to see a balanced budget amendment, understand that while this scam operates there is no way to balance the budget without imploding the economy. 

And so the problem is the system itself, not simply government borrowing and spending. To operate constitutionally, the system must be reformed from one that is owned and operated privately with private beneficiaries, the bankers, to one that is operated publicly with public beneficiaries, the American people. And the way to do that is as easy as throwing a switch. Throwing that switch would mean that the U.S. Treasury Department would issue the currency, called “U.S. Notes,” at zero cost to the government, rather than Federal Reserve banks issuing virtually the same currency, called “Federal Reserve Notes,” but at interest. 

The biggest fear among the Wall Street, deep state establishment is that Trump really might “throw that switch,” which he has the power to do. But until he does, which would automatically pay off the national debt over time, there is only one choice that might keep the U.S. and world economies from imploding. And that would be to raise the debt limit again and again. Obviously, Trump was hoping to make that task easier so that he could get back onto the business at hand, that of outracing the natural implosion of the Federal Reserve economy by growing it faster than it inherently shrinks.

Remember, nothing is truly owed when that which is borrowed can be created without cost. Why don’t U.S. Reps. Rob Woodall and Doug Collins seemingly know that? You think they don’t?


Hank Sullivan is a Forsyth County resident, businessman, author and speaker on American history, economics and geopolitics.