Monday, August 8, 2011

Is it realistic to want to get rid of all us the US's debt?

No not with the current system, it's a mathematical impossibility. Like stoned ranger already said the federal reserve prints money and loans it to the government with interest. The government pays the federal reserve with government bonds or basically IOU's that they create out of thin air. But because there is interest with the money the federal reserve printed their is no way to ever pay it back. It's like saying I'm gonna loan you a million dollars the only million dollars in existence, now pay me this all back with interest. It's not possible. The system is just flawed. The only reason money can be payed back at all by someone is because it is distributed in smaller quantities. Someone, somewhere at sometime is paying back a loan that someone somewhere else cannot. Whoever has more money stays on top.

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