March 6, 2016 Two hundred years have passed since president Jefferson wrote this letter, and not only have we not acted to reduce the risk of total collapse of our financial system, it’s actually worse by many orders of magnitude -and there’s no relief in sight. Today our largest private … Continue reading
Category Archives: Public Debt
Greek Debt
July 7, 2015 It is in no one’s interest, including the United States, to let Greece collapse. Greece’s creditors might lose most -if not all- of what they’re owed and the Greek people would suffer immensely for an indefinite period of time. The potential social, political, economic and even military … Continue reading
Debt, Taxes, Banks, And Paper
…It is a wise rule and should be fundamental in a government disposed to cherish its credit, and at the same time to restrain the use of it within the limits of its faculties, “never to borrow a dollar without laying a tax in the same instant for paying the … Continue reading
Public Debt
Currently the only way the government can maintain its liquidity is thanks to the Federal Reserve, which as of April 2013 holds 16% of total outstanding Treasuries -essentially Federal IOUs purchased by the Fed with money created out of thin air. How long this can continue is anyone’s guess.