I’m sorry if my response seemed a bit curt. It is difficult to sort out who is genuinely interested in learning from the detractors and drive-by experts. I assumed you are the author of the piece you linked to since it is unsigned. It has several glaring errors.

From that article:

So here is how to look at debt. There is national debt created by the Fed, there is State debt created by the State, and there is debt created by institutions to run pension funds. Beyond the straight up debt there are unfunded liabilities within these three entities. At the Federal level we now have $30 trillion in debt with another $300 trillion in unfunded liabilities of future debt that is promised to be paid like social security and pension funds. If you add is all up, the debt and all the unfunded liabilities every single American is about $1,000,000 in debt.

The term “debt” is somewhat of a misnomer in federal accounting. It is simply a place marker in the government’s sector to balance money created in another, the private sector. It is “always” new money creation minus tax collections, the aggregate of “deficits” since the beginning of our nation. Once it is understood that those tax collections can only reduce that deficit/debt and not survive to also “pay for” spending it becomes obvious that it is our net money supply, not a mortgage on future productivity.

All other debt originating from within the private sector, including obligations of the states, businesses, and the citizens, must fit into that number or face potential default. This is because the federal government is the monopoly holder of the patent on US dollars, so it must supply those dollars to the private sector (including the foreign sector) for all transactions denominated in those dollars. When we did the gold standard nonsense the debt would have been reduced by the amount of gold reserves held by our federal government, but we wisely ended that, in ’34 domestically and in ’71 for international trade, and moved to a sovereign fiat currency.

One leftover of the gold standard is the requirement to “match” (not fund) deficits with Treasury bond issues, meaning that all deficits are converted to those instruments by primary bond contractors. Those bonds then “back” the private sector debt issued by banks and states to fuel our economy. We could quite easily stop issuing Treasury debt altogether and simply pay the obligations of the federal government directly to anyone who has an account at the Federal Reserve, which is all of us who have an account at any FDIC institution.

This, however, would flood the system with reserves and give no incentive to thrift nor provide a floor for investors with excess reserves. Doing so would greatly increase higher risk investment and end up inflating the real estate market to extremes unless some interest dividend was paid on those excess reserves within the system. We can see this now as a result of quantitive easing (conversion of existing bonds to reserves, not money creation) as it correlates with the real estate values across the country.

The government has a very nasty habit, they either want to cut taxes, or increase taxes… they never, and I mean never think to reduce costs, they never talk about cutting waste, or eliminating duplication.

Every dollar of deficit or debt on the government’s ledger translates to a net monetary asset for someone in the private sector. It is our money supply/savings. It is also required to retire private sector bank debt. The concept that the federal government should “balance” its budget as if it were a household or business is literally killing our economy because it forces us to finance our own economy with bank debt but doesn’t give us sufficient monetary assets to retire that debt.

This makes the economy dependent upon growth sufficient to rollover bank debt as it comes due, or suffer massive defaults and contraction. A balanced budget also leaves no payment in the private sector for the resources and labor government demands and is the purpose of money and taxes in the first place. It effectively steals those resources and labor from the private sector. We have evidence of this being true, given that the last seven times we even got close to balancing our nation’s budget, clawing back all payments from the private sector with taxation, ended in severe recessions or depressions.

We have the largest GDP in the world, and that is a good thing. However, from that $20 trillion the Government takes $4.5 trillion in taxes, for which they owe $300 Trillion in debt and unfunded liabilities. But that debt is really not the debt of the government, that debt is owned primarily by the American people.

The federal government will always be able to fund any programs it can resource in the dollars it creates at will. It never “needs” our money to fund those. There is no “infinite+1” number in accounting that require it to get money from some source to enable its spending. It does, however, need us to need its currency so it can provision itself, and occasionally for us to have less of it to control inflation or acheive social goals involving distribution. Those are the only purposes taxation and borrowing serve, not “funding” anything. The points this article attempts to make point out the fallacy of the common narrative surrounding debt and federal finance. Assuming they are zero sum transactions simply fails all around.

Right now, the government pays about $300 billion in interests per year, and if interest rates go up, then our interest rates on the current debt will be the number one, line item within the government budget of over $1 trillion a year.

That $300 Billion is only an addition to the net money supply, a welfare system for banks and the already wealthy who purchase bonds. Since borrowing is not a funding mechanism for spending without a gold reserve to defend, I believe a zero interest rate, or something very close to that, is appropriate, or we can simply do away with bonds as I mentioned above. The US dollar is self funding when it is created in the private sector to pay Treasury’s obligations.

The Federal Reserve does this little dance where it pretends it isn’t a government entity and uses the overnight bond rate to set interest rates for bank lending, but no one who is familiar with its operations believes that. It can always dictate the rates because it shares a balance sheet with Treasury and will always be the gorilla in the room for bond auctions, buying or selling whatever it needs to in the secondary bond market.

Here is a truth, those who control the debt control the world. Here is another truth, we don’t know really who it is that controls the world debt, but they do. We know the Fed controls part of the world debt but Fed, itself is hidden from our view. It’s not audited, it’s not part of the government per say but fund it, control the interest rates and supply of money through the treasury.

All conspiracies have a “they” and they have dark secrets. Conspiracies are rarely worth paying attention to, but especially those that involve large numbers of people who have to be “in the know” or anything as boring and well documented as bank functions or government spending at the operation level. To say that the Fed isn’t audited is admitting one doesn’t know where to find information, or understand what they find.

The Fed is audited continuously with full disclosure down to the penney. In spite of the dance it does about remaining separate, it is very much a part of our government. It is the clearing bank for Congressional spending and receipts. It functions very much like your bank does with your checking account. Does your bank “fund” your checking account, or does it simply follow your instructions and accept/make payments on your behalf?

The act of marking up someone’s account to reflect deposits can appear to be magic to someone who lacks the ability, or the will, to understand bank functions. Congress is the magician in this case, as it creates money from thin air, but the first place that money appears is when Treasury’s spending account at the Fed is marked up by computer keystrokes. This can present the illusion that the Fed “loans” money to run our government, but that is entirely inconsistent with our Constitution and isn’t evident in its accounting anywhere.

Only those who control the debt of the world know what that word reset means. It’s like the game of chairs where the last one standing is holding the bag. Which is why globalist thinking had to come into play because no one country can sustain the debt load of the world.

Foreign countries have some of our Treasury bonds because they do business in US dollars. When they have excess reserves denominated in dollars they are likely to want to realize a return on those, so they are allowed to purchase our Treasury bonds. Given that Treasury bonds are not a funding mechanism, and never really were except that they drew down excess reserves when we did that gold standard nonsense, a holder of bonds has no power over the function of our government.

Treasury bonds are sold at a discount from their face value which reflects the going rate set by the Fed over the maturity term of the contract. They, upon maturity, are converted back to reserves with new money creation and deposited in the Fed account of the owner. Any sales of those bonds before their maturity is always zero sum, with both parties agreeing to the price. A bond holder that wanted to do mischief would need buyers of its bonds and would only take a loss in reserves from what it started with.

The US Treasury represents the safest storage of value in the world because of the strength of the US economy, which was evident in ’08 when bond sales went up considerably in spite of the US being downgraded in its credit rating by Moodys. Investors worldwide knew the US would honor its commitments regardless of its political climate or domestic circumstances. Investors at that level are also not prone to the conspiracies or doomsday predictions that seem to be unique to Amerians, who should know how their own monetary system works but don’t.

Science, medicine, or healthcare is about money, it is not about our health or safety, those are side issues to make money through the use of our fears. War, media propaganda is all about money and of course it is also fear based. Nothing you see is not about MONEY, it’s all about money. Who in their right mind would purposely drive us into the slavery of debt if they didn’t see a pay day for their vote? The only way this happens is when the reward is greater than the pain your vote will have in the hallways of congress.

Here is where we begin to agree. Because we have allowed the wealthy and their corporations to influence our government that government will always vote in favor of their donors instead of their Constitutional mandate to fund the “common welfare” with the dollars they create. By not funding the public purpose and regulating business they create the “fear of failure” among the working class to keep its demands in control. The worse the consequence of failure are, the less the people will demand from employers.

Congress holds the purse strings for America’s economy. It determines what the definition of common welfare means as mandated upon it by our Constitution and where the acceptable bottom for Americans is. It has unlimited spending power within the constraints of only what it can resource in goods and services, domestic or imported. As the “first spender” of money into the economy, it will always be the price setter for what it buys. This makes “ANY” misery that can be mitigated with federal spending entirely a “POLITICAL” decison, not economics. The only reason we don’t have economic justice is because someone in power doesn’t want us to have it.