Does the US have unlimited money?

Written by Andy

This is an answer I wrote for a question on Quora.

Does the US have unlimited money – as they can get as much national debt as they like without paying for it?

Never forget that money is a freely created commodity. It either comes flying out of a printing press at effectively no cost, or it is ‘fountain pen money’, meaning that it is simply created by entering figures in a register. Up until the time they chopped off King Charles’ head, the sovereign freely created the money of the nation and spent it into society. It was haphazard, but the people lived without debt. A ‘good’ king would build roads, bridges and facilities, a bad king otherwise.
Some ‘foreign’ businessmen (usurers) invited William of Orange from Holland to be the King of England provided he ‘signed on the bottom line’. ‘Signing on the bottom line’ meant that he would borrow the money of the nation rather than freely creating the circulatory medium. Although it was called the ‘Bank of England’, it was owned by these ‘businessmen’. The nation and the people had been debt-free until the usurers created ‘X’ pounds but expected ‘X’ plus interest in return. Illogic had arrived. The vote was created so that the interest could be paid by the people as taxation.

So the question is somewhat cross-threaded. Yes. There is an unlimited supply of money. The supply can be created by the government debt-free or can be created by the usurers when interest is payable on the freely-created money. However, money is only a token used in exchange. Too many tokens causes what we call inflation – as in blow up like a balloon. An increased volume of tokens available for limited supply of goods tends to push up the number of tokens used to exchange for a service. It is not even as some things will rise more than others. So it is not wise to increase increase the volume of money (Money Supply) significantly.

An unfortunate side effect of usury, the lending of money and expecting more in return is that debt expands to exceed the volume of money. By my calculation, in almost every country in the world, there is more debt than money. For the U.S.A., if you add government debt to private debt (mortgages and car loans etc.) the figure exceeds the volume of money by a factor of three and a half. The debts can never be repaid. The usurers generally get to influence and control over government and corporations.

In the last half century, without realizing it, we have learned a lesson not in text books. If a government cannot pay the interest (or refuses to do so) the usurers can do little about it. This was the case in Greece. One assumes that it is the government that is going to collapse but it is the other way round. It would be the banks that collapse. The money is but numbers written in a book. Our lesson learned in the last half century but not discussed is that a government can refuse to pay and the bank has no choice but to make a ‘bail out’ loan at the very last moment. We assume this was to bail out the nation of Greece, but it was actually to bail out the banks. Where did the IMF get the money? It wrote a number with a lot of zeros in a book and Greece got a few billion Euros to continue operation. That few billion did not exist the day before. The IMF simply wrote into an account for Greece a few billion.

So your question accidentally gives the secret away. The government can have as much national debt as they wish and never pay it back. Or if they got rid of the usurers control over the political establishment, they could create as much money as they wish. But don’t forget that money is a freely created commodity. It has no intrinsic value.

Your question has another tempting twist. Why would the government want more money in society?

The economy is the MOVEMENT of money. Economic activity only occurs when money moves. So to fire up an economy, it is necessary to make money move. In U.S.A., M2 Money Supply is $20108 billion for a population of 331 million. That is in excess of $60 000 per person – man, woman, and child. Most people you would know would have almost no money or large debts which is negative money. So, some people must have vast quantities of money in bank accounts that is sitting idle. To boost the economy this money must move. A tax on idle money would do that. But the clowns in charge of the clowns choose to borrow more money by selling bonds. the debt becomes payable to the big end of town and the big end of town receives the benefit of the money supply which is puts into idle accounts causing a fall in money movement called velocity which is them blamed on the people with idiotic statements such as “The people are not spending.” or “The people are hoarding money.” Idiotic because the average punter has no money to spend. We don’t need more money when there $60 000 per person, we need some of that money to move.

However, backtracking, and I may be the only one putting my life in jeopardy by stating we have learned a way to beat the usurers at their own game. Government does not and should not attempt to pay back the debt. Just keep borrowing more. The usurers have to lend more or their billion dollar game of usury collapses. If there is more debt than money, the banks are running insolvent.

Thank you for your question.

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