a year ago
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Why The US Forces People Into Bankruptcy
Or at least a percentage of you are, and I am going to explain very clearly why in just a moment. Many of you out there have great hearts and want nothing more than to help the world, and yet our society continuously decays. The unfortunate truth is that you can't solve most problems without a well functioning economy, whether it be health care, hunger, and even many social inequalities are greatly intertwined with economy such as racism, because when people are struggling they look for something they can blame, and want it to be something simple they can understand. But unfortunately its not, its a complex system of financial injustices that make most people struggle in a way they can never escape, and here's why:

Federal Reserve and the Fractional Banking System

Stay with me I am going to make this as simple as I can.
http://www.usdebtclock.org/ Shows that the total money in circulation (m2 money supply) is $12.8 trillion. All of the personal debt is at $17.6 trillion. While these numbers don't tell the whole story what this means is that if every person paid off every dollar they owed there would still be trillions of dollars still owed and no more money in the world to pay for it!

How Does This Happen?

Well just about every dollar that comes into existence does so out of debt. Our government (the tax payers) request a loan from the federal reserve (a group of private bankers) creates the money out of thin air and gives it to the government, and the government gives bonds worth the same amount, which is essentially contract to repay with interest. So let me restate that insanity, the tax payers have to repay the group of private bankers the money that they created out of thin air. This means that all money comes with debt. And since it was in exchange for a bond, which means we have to pay back more than the original amount there is actually more debt then money in the money supply and there it is! Because there is more debt then money people are mathematically required to be in bankruptcy.

It Gets Worse

If your still reading its because you seem to enjoy pessimism :) The way the money actually gets into circulation is through loans to smaller banks. So the government gives that money to banks and they are allowed to use up to a certain amount of that money to create loans (some where between 90% and 100% as shown here www.federalreserve.gov/monetarypolicy/reservereq.htm). But when the bank creates a loan they don't actually have to use that money, they get to create the money out of thin air again, leaving the original amount intact. So when you go in for a home loan, the bank, if they have the reserves, creates the money at the time of signing and you promise to pay them back! And if that doesn't make you mad, remember the federal reserve is a group of private bankers that loaned the original amount to the government who then turned around and give it to other banks that may be related to the original banks of the federal reserve!

How Do We Stack Up

Shows our debt ratio's against other countries. Assuming (and this is a big assumption) that the GDP somehow translates to monetary value in the country, countries with lower debt to GDP ratio would mean it would *feel* easier to make ends meet and to have an equivalent standard of living. You can see we are behind countries like Russia, Mexico, China and India. Of course note the asterisks as there problems with distribution of wealth so there may be large pockets of poverty non-the-less.

Who Do We Blame?

So its neither the republicans nor the democrats. The truth is that going into more debt means leveraging the reserve to flood more money into the economy which temporarily makes it appear that we are doing better (which is exactly what Obama did by double any other president which is our current position). But each time that increases the debt to money supply ratio because the application of interest which in turn mathematically requires more people be in bankruptcy. And as we pay it off we feel the effect since there is no longer enough money to go around since the original money had no real value and was created out of debt anyway. The only way this system survives is by inflation which effectively lowers value of money (and therefore the effective debt), by essentially taxing those with liquid savings. Because in this system people who save fundamentally cripple the economy.
Because of the truth of hardship in the US it is imperative that we stick together, conservatives, liberals, republicans, democrats, etc.. and realize the problem isn't each other its a fundamentally rigged system that has caused us to focus on hating each other rather than the real problem. A quick history note, the federal reserve is the US's third attempt at central banking. Both of the previous central banks were dissolved because people felt they were too corrupt, and both had less power than the current federal reserve. Things to remember when seemingly crazy congressmen run for president and write books on abolishing the federal reserve (Ron Paul).
I would love to hear your thoughts!