- 49 percent of all Americans live in a home that gets direct monetary benefits from the federal government each month
- the government is giving out far more money than it is taking in
- US government must borrow about 8 trillion dollars a year just to keep up with the game
- this game can continue is if the U.S. government can continue to borrow gigantic piles of money at ridiculously low interest rates
- what happens when the rest of the world decides that it does not want to loan these 8 trillion dollars a year at ultra-low interest rates?
”Why are governments paying private financiers to generate credit they could be issuing themselves, interest-free?”
”Between 1939 and 1974, the government actually did borrow from its own central bank. That made its debt effectively interest-free, since the government owned the bank and got the benefit of the interest.”
”The difference is simply that a publicly-owned bank returns the interest to the government and the community, while a privately-owned bank siphons the interest into its capital account, to be re-invested at further interest, progressively drawing money out of the productive economy.”