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News Link • Economy - International

IMF warns high public debt "tremendous" challenge

• Reuters

IMF chief Dominique Strauss-Kahn said on Saturday that public debt in the advanced economies is set to increase significantly and reversing the rise would be a "tremendous" challenge.

Strauss-Kahn, managing director of the International Monetary Fund, also said that global economic recovery is still sluggish and uneven and needs continued policy support in many advanced economies.


2 Comments in Response to

Comment by Olde Reb
Entered on:

What is so difficult to understand about the economic system ?? It is the same system, in a multitude of nations, as the ancient gold guilds of centuries past that charged interest on loaned gold that they did not have. It hit’s the fan when the people realize they have been economically raped.

If you analyze what Congress and the Fed do in the US, you will recognize they operate a Ponzi scheme---on a grand scale. Every dollar in circulation is created by Congress giving the Fed a security (bill, bond, or note). The Fed then creates a line of credit on the banking accounts of the U.S. Treasury for the value of the principal of the securities. Presto. Congress has money to spend that did not exist the previous day. The system is repeated in all nations. Governments enjoy the credit card that will bankrupt posterity.

The understood agreement (which may not be in writing because it would be declared illegal) is that Congress will some day repurchase the security, but in the meantime will pay interest to the holder of the security. To make it look legit, the Treasury will act as auctioneer and sell some of the securities for the Fed. The smoke and mirrors make it look like the public is buying the securities and financing the federal government’s credit card.

Every dollar in circulation, since 1933, has been created as principal of a security. If every dollar is created this way, then where does the money to pay the interest on the principal come from ?? ANSWER: It does not exist. The only way to pay the interest on the initial security is to issue a subsequent security and use the new principal to pay the initial interest. This is a classic Ponzi scheme. If there are no buyers for new securities, the scheme collapses.

OPEC bought the securities for years, then Japan, then China. Federal and state government agencies are filled with them and now the Fed is demanding legislation that will force 401’s and pension funds to buy them. It is all to postpone the inevitable. All Ponzi schemes have the same cataclysmic termination.

For a mathematical analysis of the structure, use a search engine with INHERENT NATIONAL BANKRUPTCY

 

Comment by Olde Reb
Entered on:

 

What is so difficult to understand about the economic system ?? It is the same system, in a multitude of nations, as the ancient gold guilds of centuries past that charged interest on loaned gold that they did not have. It hit’s the fan when the people realize they have been economically raped.

If you analyze what Congress and the Fed do in the US, you will recognize they operate a Ponzi scheme---on a grand scale. Every dollar in circulation is created by Congress giving the Fed a security (bill, bond, or note). The Fed then creates a line of credit on the banking accounts of the U.S. Treasury for the value of the principal of the securities. Presto. Congress has money to spend that did not exist the previous day. The system is repeated in all nations. Governments enjoy the credit card that will bankrupt posterity.

The understood agreement (which may not be in writing because it would be declared illegal) is that Congress will some day repurchase the security, but in the meantime will pay interest to the holder of the security. To make it look legit, the Treasury will act as auctioneer and sell some of the securities for the Fed. The smoke and mirrors make it look like the public is buying the securities and financing the federal government’s credit card.

Every dollar in circulation, since 1933, has been created as principal of a security. If every dollar is created this way, then where does the money to pay the interest on the principal come from ?? ANSWER: It does not exist. The only way to pay the interest on the initial security is to issue a subsequent security and use the new principal to pay the initial interest. This is a classic Ponzi scheme. If there are no buyers for new securities, the scheme collapses.

OPEC bought the securities for years, then Japan, then China. Federal and state government agencies are filled with them and now the Fed is demanding legislation that will force 401’s and pension funds to buy them. It is all to postpone the inevitable. All Ponzi schemes have the same cataclysmic termination.

For a mathematical analysis of the structure, use a search engine with INHERENT NATIONAL BANKRUPTCY


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