ActrFshr states: “(I)f Americans do take the stand to coordinate the stop to the rise in debt and followed through on it, America may be able to recover.”

ActrFshr does not understand the mathematics.

Every “dollar” in debt that Congress spends is the result of their giving the Fed a security (bill, bond, or note) for that amount. The Fed gets the security; Congress gets the line of credit on the accounting books of the Fed and their checks are honored by the commercial banks.

The principal of the security has been created by the Fed/Congress. Every dollar has been created in this manner. (Fractional reserve multiplication by the commercial banks is dependent upon the principal so created). The promise is to pay back the principal PLUS the interest. The interest has not been created. The only way to pay the interest is to pay it from principal created from more debt (issue more securities). It is impossible for Congress to pay off the national debt. (The American people are out of the loop). Ever increasing national debt is inevitable or the economic scheme will collapse.

If the concept that interest on the national debt must be paid from new debt is understood, the operation of a Ponzi scheme is obvious. All Ponzi schemes have identical conclusions.

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@NYDave

I am not certain that the Fed can arbitrarily create money. They can certainly directly infuse money into circulation that is available on their accounting books.

Congress has constitutional authority to “coin money” that has been stretched to include making paper legal tender. The procedure is for Congress to give securities (bills, bonds or notes) to the Fed and the Fed makes a credit on their books (fiat money) for the U.S. Treasury. Presto !! The checks drawn on the government are then honored.

To make it appear the government is borrowing money to finance the deficit, the Treasury acts as auctioneer to help sell securities to the Primary Dealers. The smoke and mirror scheme actually removes money from circulation in the same manner as when the FOMC sell assets. If all of the securities owned by the Fed were sold, there would be no money in circulation. The money that is left in circulation then becomes the Reserves for commercial banks that is multiplied by fractional reserve practice.

The Fed has been pressuring commercial banks, along with pension funds and government agencies, to buy more securities. With the banks holding more securities and less cash, the fractional reserve practice is restricted. This is the cause of reduced M2 and M3.

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