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The Department of Treasury is issuing record levels of debt, with $7 trillion issued in just 3 months and $23 trillion in a year. This has bloated the treasury market, raising concerns about a potential crash. The economy is propped up by debt, with federal debt rising by $1 trillion every 90 days. US treasuries are seen as cash but are actually promises to pay back in the future. The illusion that all debt will be repaid is crucial, as any doubts could lead to a financial system collapse. Fiscal trends are worsening, with a $2 trillion deficit that will increase during a recession. Collapse seems inevitable without intervention. Visit profsaintonj.com for more details.

The El Salvador president highlights hidden messages in the US financial system. High taxes aren't the issue; they don't fund the government. Instead, the government relies on printing money through treasury bonds, creating an illusion that taxes support it. This unsustainable system could lead to a collapse if not addressed by the next US president. Changes are needed to prevent a crisis like those in the past. Time is running out to avoid repeating history.

Politicians promise more "free stuff," leading to deficit spending, where the government spends more than it earns. To cover this, the Treasury borrows money by issuing bonds, which are essentially IOUs. These Treasury bonds constitute the national debt, requiring repayment by current and future taxpayers through taxation. Therefore, issuing bonds allows the government to spend today by stealing prosperity from the future. The Treasury then conducts a bond auction involving the world's largest banks.

The Federal deficit is much larger than reported due to the way Biden's team hid student loan cancellations. The deficit for the previous fiscal year was $1.7 trillion, a 20% increase from the previous year. However, the actual increase was $600 billion, making the deficit $2 trillion. This puts the US on track to be $45 trillion in debt by 2033 and $144 trillion by 2053. Debt service, recessions, and wars further contribute to the deficit. Debt service costs are rising, recessions increase spending and decrease tax revenue, and wars add to the financial burden. With additional plans for global warming funds, corporate welfare, and welcoming illegal immigrants, the Treasury will continue to be looted until there are consequences.

US Treasury Bonds are safe to invest in because the United States can always print money to pay off its debts, making default highly unlikely.

The US financial situation has some symptoms that are difficult to diagnose. Many believe the problem is high taxes, and while US taxes are indeed very high, that's not the core issue. The real problem is that even with high taxes, they aren't truly funding the government. Instead, the government is financed by treasury bonds, largely bought by the Federal Reserve. The Fed buys these by printing money, backed by the treasury bonds themselves. Essentially, the government is financed by printing money out of thin air. One might ask, if the government can print unlimited money, why collect taxes at all? The shocking answer is that high taxes exist to maintain the illusion that you are funding the government, which you are actually not.

The financial situation in the United States is misunderstood. High taxes are often blamed, but they don't truly fund the government. Instead, the government relies on Treasury bonds, primarily purchased by the Federal Reserve, which prints money to buy them. This creates an illusion that taxes are necessary for funding. In reality, the government is financed by money printing, leading to a precarious bubble that could burst. If the public realizes this, confidence in the dollar could collapse, threatening Western civilization. Urgent policy changes are needed to prevent repeating past mistakes and to stabilize the economy before it's too late.

The most important thing to focus on is how much the government is spending, as that is the true tax. Every budget is balanced, whether through explicit taxes, inflation, or borrowing. The key is to keep government spending as a fraction of our income low. By doing so, we can stop worrying about the debt.

The government creates IOUs in the form of bonds, increasing the national debt. These IOUs are then swapped for currency, with the banks selling the debt to the Federal Reserve. The Federal Reserve buys the IOUs with checks that have no actual funds, resulting in the creation of currency. The government spends this currency on various programs and services, while banks multiply the currency through fractional reserve lending. Taxes are then collected to pay off the debt, and the system relies on ever-increasing levels of debt. The secret owners, the world's largest banks, profit from this system. It causes economic disparity and enslavement, but there is hope in educating the public about the system.

The Federal Reserve and the government incorrectly call paper currency "base money," but it is actually base currency because it is not money. Money must be a store of value and maintain its purchasing power. Historically, paper currency represented real money like gold and silver held at the treasury, redeemable at any bank. Now, base currency is a receipt or claim check on a bond IOU.

The US government prints its own money, so why borrow in the same currency? Confusion arises from the language and concepts surrounding this. The government prints money and sells bonds to borrow. This process leads to debt and deficit discussions.

My conservative friends believe high taxes are the issue, but the real problem is that taxes don't fund the government. The government is mainly financed by printing money through treasury bonds bought by the fed. Taxes are collected to maintain the illusion that they fund the government, but in reality, money is printed out of thin air to finance it.

The real tax on Americans is government spending. If the government spends $450 billion but only raises $400 billion in taxes, the public pays the $50 billion difference. Inflation is a form of taxation. If government spending exceeds revenue, the difference is met by printing money or borrowing from the public.

The Treasury issues IOUs in the form of bonds. Banks buy these bonds with currency. The Federal Reserve then writes its own IOUs, or checks, and gives them to banks in exchange for the Treasury bonds. This process creates currency. Essentially, the Federal Reserve and the Treasury swap IOUs, using banks as intermediaries to create currency. This process enriches the banks and increases public debt by raising the national debt. The end result is an accumulation of bonds at the Federal Reserve.

The El Salvador president highlights hidden messages in the US financial system. High taxes are not the main issue; the problem lies in taxes not truly funding the government. The government relies on printing money backed by Treasury bonds, creating a bubble that could burst. If Americans and the world realize this, it could lead to a loss of currency confidence. Structural changes are needed to prevent a crisis.

The speakers discuss a sharp warning signal they see in precious metals and the implications for the broader economy. Speaker 0 notes that gold prices have more than doubled in the last year and silver prices have nearly tripled. They interpret this as a major warning of an impending financial and economic crisis. They compare this to the subprime crisis warning in 2007, when Ben Bernanke said the issue was contained to subprime and many did not grasp its significance. The speaker explains they were short the market and anticipated the crisis, which subsequently materialized about a year later. Based on the current situation, they believe gold and silver’s rise signals a forthcoming dollar crisis and a US Treasury crisis, suggesting it could hit next year and emphasizing that people need to take action while there is time. The core message is that the metal price increases are not merely inflationary signals but warnings of structural vulnerabilities in US sovereign credit and the dollar, with a potentially tight timeframe for response. Speaker 1 adds that a significant portion of our debt remains sustainable in part because we can trade global currencies, which allows politicians to continue spending more than would otherwise be possible. This point underscores how the international currency system enables higher debt levels and ongoing fiscal expansion, contributing to the conditions that the speakers warn about. Key assertions include: 1) gold and silver surges reflect a looming US dollar and US Treasury crisis rather than just typical commodity inflation; 2) the crisis could emerge within a short horizon, possibly next year; 3) historical parallel to the 2007 subprime episode is used to support the claim that seemingly contained problems can escalate into a major crisis; 4) the global currency system’s flexibility enables continued high spending, contributing to fiscal vulnerabilities. The overall message is a warning to prepare for a potential financial crisis tied to sovereign credit and dollar stability, emphasizing swift consideration of actions in light of the perceived urgency.

High taxes in the US aren't the main issue; they don't fund the government. The government is financed by printing money through treasury bonds bought by the Fed. This creates an illusion that taxes support the government, but it's really money printing. If this truth is widely known, it could lead to a currency crisis. The next US president must make significant changes to prevent a collapse. Winning elections won't fix the problem; a complete overhaul of the government is necessary. It will be tough, but it's essential to secure the country's future.

The United States can always print money to pay off any debt it has, so there is no chance of default.

The speaker claims that high taxes are not the core financial problem in the United States. They argue that taxes don't truly fund the government, which is instead financed by treasury bonds purchased by the Federal Reserve. The Fed buys these bonds by printing money, which is backed by the bonds themselves. Taxes exist, according to the speaker, to maintain the illusion of government funding. The speaker contends that the government is funded by printing money backed by paper, creating a bubble. If the public were to realize this, confidence in the dollar would collapse, potentially leading to the fall of Western civilization. The speaker urges the next president to implement necessary policy and structural changes to avoid this outcome.

Speaker Jared Bernstein at the White House explains that the US government prints money and then uses that money to sell bonds, which is how it borrows. He emphasizes that the government definitely prints money and definitely lends that money by selling bonds, so the government prints money and then lends it by selling bonds. He acknowledges that some of the language around this topic—and the concepts—can be unnecessarily confusing, particularly the terms used in Modern Monetary Theory (MMT), but he insists there is no question that the government prints money and uses that money to lend by selling bonds. He repeats the sequence: the government prints money, and they use that money to sell bonds and borrow. He admits confusion, saying, “I’m just I don’t I can’t really talk,” but reiterates the basic point: the government clearly prints money, and it clearly borrows, otherwise the debt and deficit conversations wouldn’t exist. Speaker 1 continues by trying to clarify the mechanics in simple terms: the government prints money and then uses that money to sell bonds, which is how borrowing occurs. He repeatedly confirms the process: money is printed, used to issue bonds, and people buy those bonds, providing the funds the government borrows. He notes that sometimes the language and concepts can be confusing, but the core idea remains that money is printed and bonds are sold to lend that money to the government. Speaker 3 then poses a meta-question, asking whether conventional economists truly understand what is being discussed or if they do not understand the topic at all, suggesting skepticism about whether mainstream economic understanding aligns with the descriptions being given or with the terminology used to discuss these issues. He questions whether conventional economists grasp what is being spoken of, or whether they are not understanding it. Across the exchange, the central mechanism discussed is that the government prints money and uses that money to sell bonds, with bonds being purchased by lenders, thereby financing government borrowing. The speakers acknowledge the potential confusion surrounding the terminology, especially in relation to Modern Monetary Theory, but they maintain that the fundamental process is clear: money creation by the government, followed by borrowing through the sale of bonds. The dialogue concludes with a reflective note from Speaker 3 about the level of understanding among conventional economists regarding these concepts.

The biggest hidden secret of money is that the modern banking system allows a few to plunder many through a scam. Currency is created faster than trees can grow, but most people don't understand how. Modern societies create currency similarly, and the US dollar is the majority of the world's currency, so the United States will be used as an example. It begins when a politician says, "Vote for me."

High taxes in the U.S. are often blamed for financial issues, but the real problem lies in how the government is funded. While taxes are high, they don't truly finance the government. Instead, the government relies on treasury bonds, primarily purchased by the Federal Reserve, which prints money to buy them. This creates an illusion of funding through taxes, but in reality, the government is financed by money printed out of thin air. If people understood this, confidence in the dollar could collapse, leading to severe consequences for Western civilization. Urgent policy changes are needed to prevent a financial crisis similar to past mistakes. There’s still time to act before the situation worsens.

The treasury creates currency and deposits it into government branches, which politicians then use for deficit spending on public works, social programs, and war. Government employees, contractors, and soldiers deposit their pay in banks. When you deposit currency in a bank, you are loaning it to them, and they can use it as they please, including investing in the stock market and lending it out at a profit. This is where fractional reserve lending comes into play, allowing banks to reserve only a fraction of deposits.

The Federal Reserve's actions are worrisome. They've lost trillions by borrowing money at high rates (5.4% from banks, 5.3% from funds like Fidelity and Vanguard) to buy government bonds. This artificially inflates the government's perceived financial health, encouraging excessive borrowing when rates were low. This process diverts capital from the private sector, hindering business growth and job creation. Instead of the Fed holding massive balances, that money should be used by businesses for expansion and innovation. The Fed's actions are mirrored by other major central banks globally, exacerbating the problem. It's not money printing; it's expensive borrowing that harms the economy. Freeing up these funds would allow banks to lend to small businesses and stimulate economic growth.

The biggest hidden secret of money is that so few plunder so many through the biggest scam in history. The modern banking system creates currency faster than trees can grow. Most people don't understand how currency is created because economists and bankers make it seem too complex. Every modern society creates currency similarly, but the US will be used as an example since the US dollar is the majority of the world's currency. It starts when a politician says vote for me.