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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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