Quote from: Iseree22 on October 11, 2011, 06:31:08 AM

Quote from: kloinko1n on October 10, 2011, 10:52:09 PM

You see, it's the private banks that create the currency, and it's the governments that borrow this money from them. With compounding interest.

Don't worry your not the only one that has been conned into believing this. This is partly true, private entities create Horizontal Money(Credit Money), and the State creates Vertical Money.

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The debt is evil indeed. Because for instance in the USA this debt shouldn't have existed in the first place, as according to the constitution it is congress only that has the right to print and issue money.
And so, as the national debt of the USA has been created illegally, there is no legal necessity to pay it back.
And the same goes for the interest.

What have you been smoking?? The debt-limit is the true source of Vertical Money in the U.S, which is under Congressional Authority, so yes, currently as it has always been, Congress remains the body with control over the creation of money(Vertical Money).

You obviously have not read and understood what has already been written in this topic, please do so!

I could engage in a literally endless discussion about circuitrist, chartalist, Austrian and whatever more school's monetary theories about horizontal money supply curves and their bending to vertical curves as well as their relationship to exogenous and/or endogenous money creation, but I won't.
Instead I wil just vent my own very humble opinion that in my view selling bonds to China is not much different from selling them to the private banks (i.e. the federal reserve bank).

The only difference is that China obtained their dollars through exporting produce to the USA, in a sense contributing to the wealth of the American population, whereas the federal reserve obtained their dollars through printing, thus debasing the currency and reducing the wealth of their own people.

Both bonds sold represent a liability.

P.S.: I'm a non-smoker and believe that there is a difference between the issue of money (no interest due) and controlling the issue of the same (with interest due).