Congratulations, US Voters!

It is now mathematically impossible to pay off the U.S. national debt.
Be prepared…
A lot of people are very upset about the rapidly increasing U.S.national debt these days and they are  demanding a solution. What theydon’t realize is that there simply is not a solution under the currentU.S. financial system. It is now mathematically impossible for the U.S.government to pay off the U.S. national debt.

You see, the truth isthat the U.S. government now owes more dollars than actually exist. Ifthe U.S. government went out today and took every single penny fromevery single American bank, business and taxpayer, they still would notbe able to pay off the national debt. And if they did that, obviouslyAmerican society would stop functioning because nobody would have anymoney to buy or sell anything.

And the U.S. government would still be massively in debt.

So why doesn’t the U.S. government just fire up the printing presses and print a bunch of money to pay off the debt?

Well, for one very simple reason.

That is not the way our system works.

You see, for more dollars to enter the system, the U.S. government has to go into more debt.

The U.S. government does not issue U.S. currency – the Federal Reserve does.

More…

2010-02-07