Tuesday , 19 September 2017


The Current Financial System Is To Blame For the Excessive U.S. Debt! Here’s Why

Have Americans been living above their means these past 37 years (since 1980)? I think so. We have10623945-the-word-debt-in-the-american-flag-colors-americans-in-debt borrowed and borrowed (and borrowed) to maintain our prosperity and our exceptional lifestyle with much of this at the expense of the world’s citizens who provided us the goods. America has 4.4% of the world’s population yet we consume some 23.6% of Global production. How can this happen? Why this favoritism?

What happens is that America has the ‘reserve’ currency for the planet and we can buy goods and services without any penalty/restriction from ALL nations. America can buy on credit (debt) from all 200+ countries on our planet. We can consume much more than we produce (in exchange) as we are essentially the BANKER for the planet. Our dollar ($) is accepted mostly everywhere and this allows us to consume beyond what other countries are capable of doing (given their situation).

Other countries…do not have a reserve currency which is accepted by all nations. This means that these (less favored) countries must live mostly by their own production and via a much lower level of borrowing. Every country borrows to a degree but America can BORROW to excess (as we have a currency which every other nation desires). The SYSTEM favors America!

So is America an exceptional nation (economically) or are we mostly exceptional in taking ADVANTAGE of the System? Are we ‘giving’ an equivalent amount to what we ‘take’ from the planet? This is an important issue in economics. It appears that America does ‘take’ more than they ‘give’ (especially in consumer products and the goods sector of the world economy). Why do we run trade deficits every year to the tune of billions (today some $768 billion)? This has been happening every year since 1976. The cumulative trade deficits have exceeded some $12 trillion.

If America was ‘giving’ to the planet in proportion to what we are ‘taking’ from the planet, then our trade deficit should be closer to zero… Our debt situation should be much less and our manufacturing should be much higher. We should also have a currency which creates ‘discipline’ so that production is in balance with our consumption. Having the ‘reserve’ currency for the planet provides us ENORMOUS advantages and creates HUGE suffering for many others on our planet! This is all due to the financial SYSTEM as it is set up!

When you look at the numbers above, think about the BIG picture (the entire planet of 7.4 billion people). We now live in an interconnected global society where each person should be viewed as an equal (economically). Does our SYSTEM allow for this equality of prosperity? I don’t think so!

The comments above are edited ([ ]) and abridged (…) excerpts from the original article by Donald Swenson

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

Thanks for reading! If you want more articles like the one above visit our Facebook page (here) and “Like” any article so you can get future articles automatically delivered to your feed. You can also “Follow the munKNEE” on Twitter or register to receive our FREE tri-weekly newsletter (see sample here , sign up in top right hand corner).

Remember: munKNEE should be in everybody’s inbox and MONEY in everybody’s wallet!

Other Articles by Donald Swenson from the munKNEE Vault:

1. Is U.S. Financial Judgment Day Coming Due This Fall?

Watch what emerges in the coming months and ask yourself if the DAY OF FINANCIAL JUDGMENT is here! I am.

2. A Great Visual Explanation Of How Monetary Systems Work

This video provides the essentials for comprehending what has been done to all of us by well meaning elites who did not understand their own ‘human’ nature… Human enslavement is the end result of this Ponzi system. Watch and learn as our TIME is short!

3. Wake Up! Today’s Digital Money Is Rigging ALL the World’s Financial Markets

Today, we live with a rigged international cyber trading system. Digital money allows our Central Banks (who can create these digits out-of-nothing) to trade our markets and rig prices at will. Why do you think that our general stock markets continue to go up and up as dire international events happen daily?

4. Digital Currencies: Investors/Traders Are Being Grossly Deceived! It’s Time To Get REAL!

My sense is that most investors and traders today are grossly deceived about the nature of reality. REALITY will prevail eventually! Isn’t it time to get REAL? I am.

5. It’s the Economy, Stupid! It’s the Only Hope for Real Change

The system is the problem and few comprehend this issue [and, unfortunately,] few desire to comprehend this issue [so] we will see no meaningful change until the economy turns down significantly. Watch and wait is all we can do for now!

6. Our Money System Is Pure Fantasy! Here’s Why

Do our elected leaders comprehend the ‘nature’ of our money today? I don’t think so! We need to educate all our leaders and the public on what is happening today within our markets!

7. ‘Virtual’ Money vs ‘Real’ Money! Do You Know the Difference?

Deception is now so great in our world of finance that people can not discern the difference between what is ‘real’ and what is ‘fake’ money.

8. Total Collapse Of Our Keynesian Debt System Could Arrive At Any Moment

Our economic system (Keynesianism) is totally broken and invalid for solving our global economic problems going forward because it is a one-way street where debt grows and grows to unsustainable levels. The end game is default and bankruptcy.

Other Related Articles from the munKNEE Vault:

1. To Believe That Debt Has No Consequence Is To Believe In Magic – Believe At Your Own Risk!

America’s national philosophy has become relying on debt to pay today’s expenses. Nothing’s easier than borrowing money, especially at super-low interest rates but believing that debt has no consequence, that the status quo is permanent, that all the promises based on soaring debt can be paid—it’s all an appealing fantasy. Believe at your own risk.

2. Alf Field: America’s Current Account Deficit Causing World’s Financial Crisis! Here’s Why

The onset of the world’s worst financial crisis in many decades is one of the most important factors (if not the most important factor) currently influencing investment decisions. The crisis has created chaos and confusion. Not many people understand how the world has arrived at this unfortunate situation. This report endeavours to identify the underlying causes of the crisis and explains why the USA current account deficit has been the main destabilising force in world finance.

3. Will We See Another September 18th 2008 Style Banking Collapse? A Retrospective

The US Government is on a trajectory to default on their obligations, and the same can realistically be said for the UK and Japan. The answer put forward by the US, UK and Japanese governments? Quantitative Easing and 0% interest rates. Have they learned nothing from the past decade?! Words: 2355

4. The Developing Disaster Facing the US Dollar & the World

When the supply of something is increased sharply relative to demand, the value of that commodity will decline. If the supply continues to increase rapidly and indefinitely, then that item will become worth less and less, with the potential to finally become nearly worthless. This is the Developing Disaster facing the US Dollar and the world. This is the factor that could become the single most important criterion in investment allocation decisions and possibly even for individual financial survival.

5. Where Is This Unprecedented Global Financial Crisis Headed? A Retrospective from Alf Field

Everyone must be wondering where this “unprecedented global financial crisis”, (the World Bank’s words), is heading. What follows, for what they are worth, are my cogitations on this crisis. Words: 1641

6. Here’s the Timetable For the Upcoming Explosion Of the U.S. Debt Bomb

The U.S. national debt is not a problem, says Gary Shilling, until we either see “a tremendous amount of inflation or a complete breakdown in confidence in US Treasury obligations.” Once that happens, the world’s largest economy is at risk of an exploding ‘debt bomb.’

7. We Live In An Unreal World That Will Come To A Very Abrupt End

We live in an unreal world with unreal prices based on unreal (fake) money and this is why it will all come to a very abrupt end. That time could start at any time. Fundamentally it must happen. Here’s why.

8. David Stockman: “Fiscal Bloodbath Coming This Fall”

Stockman explains why the economy could go off the rails this year, after our government endures a major budgetary crisis.

One comment

  1. Education is essential if we desire to understand monetary history and the coming monetary calamities. You have put together a great list of missives for people to read. I hope we get some takers who desire to discern the times. D

Leave a Reply

Your email address will not be published. Required fields are marked *