Americans seem to love conspiracy theories and there is a new one doing the rounds. Have you ever thought of the debt crisis in America as a scam?
Well here is a theory for you to chew on and make your judgement The theory goes like this. The Federal Reserve buys all the debt that it can and then dumps the debt on the citizens of that country by making them pay for the debt via taxes. The taxes could be used to improve infrastructure and the like, but instead it goes towards paying interest on debt. It is simplistic, and this is why people probably do not get that there is a scam going on. The media is also a past master at concealing and twisting facts so that tax-paying citizens are oblivious to what is really happening to them.
The U.S. Government borrows money from various sources such as oil exporters, China, The Fed and the Bank of England. In exchange for the currency (non-redeemable paper notes, fiat currency, electronic currency), the lenders are given U.S. Treasury Bonds.
The U.S. Government then collects taxes from honest hard-working and unsuspecting tax payers to pay the bond holders. Effectively, whether we like it or not, the citizens of America then become responsible for debt that they never incurred.
The debt has soared to $14.5 trillion, and it lies squarely at the feet of the citizens of America. IOUS are a way of saying that ordinary citizens are responsible for the debt. The U.S. Government gets the money via the loan and tax payers sit with the bill. People are not realizing that unlike going to a loan shark where you actually get to spend the money, in this scenario, citizens do not get to enjoy a cent of this money. The U.S. Government gets to do what it likes with the money.
American citizens have no say in how the money is spent, and the U.S. Government does not have a problem wasting money in any way that they see fit. In 2000, the annual budget was $2.1 trillion, and today it is $3.8 trillion. Much of this money is unaccounted for and hidden by the U.S. Government. The U.S. Government cannot explain this reckless spending as inflation has been kept relatively low over the last 10 years. The reality is that much of this money has been squandered on bailouts of financial institutions, more specifically, Wall Street bankers.
The U.S. Government has failed to control health care spending, this is evident in that fact the cost of this is rising at around 7% each year. More money is being spent on Social Security than the U.S. Government is managing to bring in. This is because there are no restrictions on Social Security, despite the fact that it is obvious that there should be. Trillions of dollars are being spent and not accounted for.
Reaction to this theory was unanimous in that most people agreed with it. It is believed that the U.S. will never get out of the situation as the interest is becoming too heavy a burden to handle. The only winners are the bankers and politicians who simply create more fiat currency (non-redeemable paper notes, electronic currency). They are becoming wealthier, not only at the expense of the American taxpayer, but at the expense of taxpayers and decent honest hard-working folk worldwide. One of the best ways to help end this scam, while protecting your monetary wealth, is to buy and store physical silver.