The debt debate has been on the wrong track since the beginning, yet we’re still being led down that track. The deficit debate and the debt debate should not be treated as though they are the same topic for they are not. But the deficit and the debt ARE in some ways a result of the same cause.
The deficit, as it’s currently defined, is the difference between what the government takes in via tax collections and what the government spends.
A problem with that scenario though is that the government shouldn’t be able to or have to borrow to make up the difference, since the government, being of a sovereign nation and having a rulebook called the Constitution that says Congress shall “coin” the money, would only need to create sufficient money to fill in the gap. So the deficit debate is a result of a lack of sovereign currency more so than overspending or undertaxation.
The debt is not caused by the deficit. The spending that contributes to the deficit though also exacerbates the debt.
The debt is caused, as was the deficit essentially, by the lack of sovereign currency. Every dollar in US circulation is a dollar of debt to a private bank, plus interest. Those banks create the nation’s mostly digital currency. Since the government has shirked its responsibility to coin the nations money, it has shifted taxes to the role of paying interest on the debt and has shifted to selling bonds (borrowing) to obtain spending money for itself. To make things crazier, that process of selling bonds essentially is a national debt mill. It scoops out a bucket of debt money from the already flowing river of debt called the US money supply or currency, gets the debt from it, and then puts it back into the stream just to repeat the process indefinitely. All currency in the US, other than a few remaining United States Notes and the nation’s coins, is debt to a private bank. Some of that debt is multiple layers deep.
Increasing taxes will NOT end the debt, and won’t even reduce it. And even if it makes a slight dent, it’ll bounce back bigger than ever since the entire money supply is debt and the nation will demand and need more money of course, especially as population continues to grow and prices continue to soar and the wealthy continue to hold money out of the circulation.
Decreasing spending won’t help much either.
Only by shifting back to a sovereign currency, replacing all debt notes with that sovereign currency, and paying off both the Federal Reserve Bank (give to Caesar what is Caesar’s) and the outstanding bonds/treasuries can we be debt free as a nation. To replace all debt notes with positive US Notes would by definition require fractional reserve lending to be ended and replaced with a Constitutional “new currency” distribution method.
Few, if any, politicians, as you can see, talk about anything that will actually work to reduce or eliminate the debt. But it CAN be done, and done fairly quickly with a coordinated effort among the states and our representatives.