The debt of the United States is a direct result of that of the US federal reserve. The fed prints every new dollar and loans it to the US Treasury at interest. With that system in place, it is impossible for the US to pay off their debt, unless they abolish the fed.
https://www.youtube.com/watch?v=iFDe5kUUyT0"The Biggest Scam In The History Of Mankind (Documentary) - Hidden Secrets of Money"
I guess many of you will know this video. I think it fits perfect in this thread as it shows how ridicolous this debt system is.
u guys are aware that the "profit" a central bank generates gets passed on to the government treasury?
I think the interest generated by the Fed will be paid to the US government treasury. So the Fed lend money to the US government for free.
how it works: central bank lending money to a commercial bank for X interest -> commercial bank lends it to governments/private people for X+Y interest -> the government gets X - costs the central bank needs to keep running, reserve assets etc. but pays X+Y for their debt.
this "every dollar issued by the fed generates interest debt which never can be payed back" is a myth
kinda sad to see that the bitcoin community is build ontop of such conspiracy theory nonsense spreaded who have all their knowlage about economics from either bolgs or youtube videos.
Will be interesting now in Switzerlend.Referendum to end money creation by commercial banks,All in Central Bank hands.It is more and more stronger movement in Europe,to limit banks to be only financial services
USA is diffrent.FED is in fact group of biggest private banks
"The Federal Reserve System's structure is composed of the twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous privately owned U.S. member banks (...). The U.S. Government receives all the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, and an account surplus is maintained. In 2010, the Federal Reserve made a profit of $82 billion and transferred $79 billion to the U.S. Treasury."
the "ownership" of the Reserve Banks by the commercial banks is symbolic; they do not exercise the proprietary control associated with the concept of ownership nor share, beyond the statutory dividend, in Reserve Bank "profits."