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The Poor & Rich

The economy isn't meant to be 'fixed'. The way the system has been assembled, the debt is never supposed to be paid in full, the deficit gap never intended to be closed.

It's mathematically impossible to accomplish these things given the way the economy in America has been set up.

The more wealth Americans create, the more debt the banks automatically can create. It is endless. Americans are never going to pay off the debt to their banks and by extension, their debt to the central banks. If Americans paid all their debts off (in a hypothetical situation), the money supply would be insufficient because money comes into being as debt. The bigger the debt, the bigger the interest earned by the elite. The debt can never get too great in the elite's POV as the elite can never make too much money in interest payments. And the money they make entrenches the elite's power.

The debt millstone is around the necks of Americans permanently – at least, until the whole money creation system is overthrown or the nation's economy collapses. The system is designed so that the debt is continually rolled over to the next generation – passed onto them to enslave them. This produces neverending generations of serfs for the elite. It doesn't matter how productive people are in America, how many natural resources they rip up from the ground, America can never pay the debt off. Medicare, Social Security, and welfare spending for the corporations and for the bottom 10% add to the problem, but they are not the real cause. By focusing on government spending, people are missing the big picture, and they show they lack a fundamental understanding of how the economy in the US works.

The recent bailouts of the big banks provide a clue into the workings. In this hopeless situation in which the nation's debt can never be paid off and grows in perpetua, CUI BONO?

The answer is the elite.

They make money from countries being in debt, by their having a money creation system that involves a central bank which introduces money into the system by printing it and holds reserves of it (the real money) that are only a fraction of the money printed. In many nations' cases, reserves don't even have to exist.

So while everyone is wringing hands over the deficit and over the debt, the smart ones, that is, the elite (who know everything because they are the ones who established this system in the first place) and the left wing economists like Krugman and Stiglitz, know that the system has been designed in such a way that the money owed can never be paid back in full.

So having established that this is how it works, what is the game? The game is fighting over the pile of money that DOES come into the Treasury – the tangible money that can be spent without paying an interest sum for it.

And the banksters and the elite have had first dibs on that pile – through the bailouts, and through the money spent on the elite's wars (Iraq War, Afghanistan War, Pakistani War) and the Homeland Security charade that is supposed to make people think the threats are real and come from overseas. Then it's the turn of the other rich – the ones making over $250,000 a year – through tax cuts for the wealthy. Then it's the turn of the bottom 10% – the ones perpetually on welfare. Lastly, the productive middle classes receive the crumbs that are left. This is why the income taxation system was introduced – so that the ones that made the money would not be the ones who kept it.