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Joe Nobody

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The laughable debate about the USA national debt.... Part one

(First of all I have to apologize for my poor English but I'm from Europe

I decided to join the TED family, I saw a lot of interesting videos on Wimp.com so I started to visit the TED web site and I find fascinating.
Long time ago I had search on the web about the enormous debt in America, and I would like to share a few thoughts about the subject.

I watched soooooo many CNN, FOX, MSNBC debates, reports, comments, and find absolutely shocking the fact, NOBODY talk about the real reason why we are in debt. As a matter affect why is the whole World in debt? Is that normal as soon as an average citizen enter in to the school or work area they are in debt in they rest in they life. Mortgage, student loan, car loan, business loan, appliances, medical bills, EVERYTHING.
Familiar?
“ To order, have your credit card ready it’s sooo easy….”
“ You can earn double miles on this card,
“ Save 1% on this, 2% on that, 3% on whatever..

Currently amounts to a total credit card debt of about 962 billion dollars. The average credit card debt per credit card owning household is 14,750 dollars. This is the total credit card debt divided by the number of households with credit cards. Credit card penalty fees in the US add up to about 20.5 billion dollars a year.

Approximately 609.8 million credit cards are currently in use in the United States, with credit card users having an average of 3.5 cards each. There are about 176.8 million credit card users in the US. Every year, about 5 billion credit card solicitations are mailed in the USA.

Students are particularly likely to have credit card debts and they are also likely to have multiple credit cards. The average credit card debt of a new graduate is 4100 dollars, with about 20 percent of graduates having credit card debts of more than 7000 dollars.
Most of us in debt, in the rest of our life.

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    russell lester

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    Jan 9 2013: Debt is a strangling issue, and it is critical for individuals as well as nations to get it under control. The first part of that is understanding that every dollar kroner Mark or Yen is not money per say, but currency. Money has an intrinsic value or is directly backed by some commodity of value, currency is a complicated IOU. When currency is needed by a nation it requests a loan from a central bank which ten after establishing the terms loans the nation the ammount needed. This money loaned does not actually exist. The country then prints the currency and issues it or spends it what have you, each unit of currency (say each dollar) then enters circulation with a value of 1 $ at current value, but caries a debt attached to it of 1$ plus whatever interest deal the central bank and the nation have worked out (say an additional .02 cents) the Banks auction of the debt that the country in question owes the bank to other nations or interested buyers who have confidence that the country will down the road pay this debt off. This has been the case since 1971 when the USA and the world(at the time the USA dollar was the international currency) stopped using the Gold standard, this move was made by President Nixon as a temporary measure to protect the US Dollar, 42 years ago Temporarily that is. On top of this you have the consumptive credit dependent lifestyle that you have described, which is like having lung cancer on top of a chest cold. Until recently most Americans would count the amount of credit available to them as part of their net worth. This is worse than counting the "value" of your house or the "value" of your stock holdings because its possible that the house or stocks might be of value when you need to sell thenm while using credit simply increases the debt you are under.

    • Joe Nobody

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      Jan 9 2013: Dear Russel. My article have a few more parts, but I can't see, so I'll continue that through as an answer.
      Part two
      Us total debt over 47 Trillion Dollars.

      First of all I would like to ask a few questions. (I will also try to answer of them by my best knowledge. Feel free to correct me if you think you know better. This is how conversation begins. But please don't think your answer is better just because that is what you think. I want know WHAT DO YOU KNOW? SO LET'S BEGAN...)

      The US national debt around 16.4 Trillion dollars
      Questions:

      When was the last year when the amount of debt decreased?

      Answer: 1957. 55 years ago. Government comes and goes, this or that party in the majority, Presidents comes and go, the debt almost never going down. In the 50' a couple of year went up and down with a couple of billion. Not really big change.
      If you go back more in time (I did about 100 years back) you will se almost never decreased. If it’s happened just a few years and very little amount with.

      Question:

      The interest the GOV pay right now about 250-260 billion dollar per year. Some study say way over 300 billion or 438 Billion. ) Where is the money go? The FED getting the money. I’m sure you know its goes to them by the form of federal income tax. (Some portion of it.)
      You have to understand how the Government barrow money. (See the movie: Zeitgeist The Federal Reserve) In 1913 the Federal Reserve Act given right to produce the currency. Some say actually this is unconstitutional.
      But it's worth it to know the FED is a private Bank.
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        russell lester

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        Jan 9 2013: So far I'm following you and I would have pegged the decrease of the debt back in 1976 but I think that was actually a decrease in the growth of the debt. Everyone should know by now that the Fed is a private bank, and everyone should know the bitterly fought debate about having a central bank and its questionable constitutionality. I want to learn more about the gold standard and about the silver standard that William Jennings Bryan spoke of in his speech.I would like to see if anyone has any suggestions for currency reform or the option of nationalizing banks when they beg for bail out money then file lawsuits to avoid repaying the government

        I assume you are going to develop this conversation from personal debt and irresponsability to national behavior of the same kind and by showing how to control personal debt demonstrate how to control national debt. But assumtions are dangerous. I am interested in anycase.

        • Joe Nobody

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          Jan 9 2013: Have you see any of those clips I did listed on the end? The conclusion is with central bank system, factual reserve banking system the debt can not decrease. All the clips saying the same thing. No debt=no money. Which is scary. But I enjoy the talk so keep up!! Thank you.

        • Joe Nobody

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          Jan 9 2013: Hey just a thought. You know there is no gold in the hand of the Government. So how would be possible to go back to the gold standard? ( Ron Paul, with all my respect...)
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    Xavier Belvemont 30+

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    Jan 9 2013: If theres one thing I've learnt in life so far, its that people don't buy expensive things for themselves, they buy things so others can see how expensive it was.
    An artificial attempt at self-worth and self-value, because you've sacrificed everything thats 'you' (your interests, your dreams, your family, your life) just so you can make more money and buy more crap, which quickly becomes your way of trying to fill the unfillable void of what you've lost (because consumerism never ends) that you created by being caught up in a world of 'You can put a price tag on happiness'.
    The ultimate crock of **** our society demands of us.

    Moneys not just the root of all evil, its the root of all distraction,
    The distraction that stops us from sitting down at the table and really wondering
    'Why the hell am I working 60 hours a week, sitting in traffic 2 hours a day, working for a jackass in a tedious job which allows no creativity and has no value, being away from my interests and friends and family, stressing myself out, losing sleep, damaging my health, wasting my life...Just so I can get a new phone inwhich its sole difference with the one I bought 4 months ago is an add-on that has no observable benefit to me...??'..

    • Joe Nobody

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      Jan 9 2013: Dear Xavier!My article have a few more parts, but I can't see, so I'll continue that through an answer.

      Part three:

      Most people assume that the Federal Reserve Bank is federal--that is, part of the United States' government. However, the Ninth Circuit Court put that issue to rest in 1982 when they adjudicated:
      "Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the Reserve Banks are not federal instrumentalities for purposes of the FTCA, but are independent, privately-owned and locally controlled corporations." [Lewis vs. U.S., 680 F. 2d 1239, 1241]

      Let's step outside for a moment and look at globally.

      Question:

      How many countries on Earth? (In the UN around 200)
      How many have Central Banking System? (Pretty much all)


      Is there a Country without Government Debt? (NONE)

      The interest the countries paid over 7 Trillion dollar (one year) according the last data. The total interest US have to pay in the near future maybe 8 years from now will be over 1.3 Trillion dollars. Per year. Please don’t tell Chinese investors. Chine own about 10% of national debt.
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      Paul Kirhagis

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      Jan 9 2013: I agree with you but it's not a strictly American issue. The need for status is hard-wired into our DNA. When our ancestors could display status to their tribe they were considered the best mates. It's an evolutionary behavior that comes from our "Reptile brain".

      The problem is our "reptile brain" works subconsciously and first.

      • Scot Wilcox 10+

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        Jan 10 2013: Yeah, seriously, we have that "Look at me!" instinct. There's ways to get around that though if you work at it. You don't have be a self-centered animal your whole life, there's always ways to progress and change.
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          Paul Kirhagis

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          Jan 10 2013: Completely agree, but people have to first be made aware then taught to think critically about there behaviors....that's why ted is awesome :)
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    Xavier Belvemont 30+

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    Jan 9 2013: My perspective on money is the same as my grandfather.

    If you don't physically have the money in your hand then you don't have it.
    If you can afford it, look around and you'll find the same/equal/better for less.
    If you can't afford it, then don't buy it..

    To this day (Although still in my 20's), I have never had a mortgage, loan, credit card or contract.
    I've never borrowed money and I've never lent money (beyond marginal amounts, that is, I'm not an a$$).
    Besides this, I have a highschool, college and university education, a series of other qualifications, a car, a place to live, savings, my bills paid..
    (and no, no parents etc etc were financially involved)

    I never accept the argument that you need credit (and by extension, debt) to survive.
    If you find yourself going into debt its because you need a reality check.
    Most likely because you think you can live a higher life than you can afford or because you waste your money on nonsense for irrational reasons.

    If you can afford to buy a jet ski when you live in a city, a 70inch tv, a brand new second car, buy take-out every night and buy a 6-bedroom house for just you and your dog, then by all means go nuts, live life to the full.
    But don't complain to me when you're debt-ridden because you're doing it on a $20,000 a year salary..

    • Joe Nobody

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      Jan 9 2013: Part four:

      Question:

      To whom they paying the interest? (I believe to the Central Banks)
      Question again Who own the Central Banks?

      Here is the link to the list of Central banks.

      http://www.centralbanksguide.com/central+banks+list/


      Question:

      Total Government debt in the World over 50 Trillion Dollar. ( who knows the real number? )
      Question: Who had this money to lend? Nobody. The money based on debt. How banks create money from thin air?
      (See on YouTube: Money as Debt)
      Most of us don’t know what Fractional Reserve Banking System.
      Would you be surprised if I will tell you the entire banking system design to do one thing and one thing only put you and your family, your Companies and your Country in DEBT.

      Different subject:

      Question:

      We know the US government barrow money from FED to fight the wars. But where is the money coming for the other side?
      Who gives money to our enemy? Please don't say those governments. Every government is in debt. So they have to barrow money from they Central Banks.

      Question: who own those banks?

    • Rob Freda

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      Jan 9 2013: Xavier

      That might work for you personally but your avg consumer is in the quicksand and has been trained to sit there and enjoy it. As tech advances the ability to predictively manipulate and optimize manipulation of the consumer increases

  • george lockwood 20+

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    Jan 9 2013: There are more or could be more nuances to your question.
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