Friday, October 31, 2008


(Week 12 - Friday, Oct. 31)

In the previous three columns I have attempted to establish a three-part premise to establish a basis for understanding why our children will not inherit the "national debt". It can be enumerated as follows:

#1 – The so-called "loan" from a private bank by which money is created and issued is not a loan in the dictionary or common sense meaning of the term, but is, rather, a process by which money is created "out of thin air".

#2 – Since no money has been loaned, how can there be a resulting "debt"? In truth what is called a "debt" to the banks within the present monetary system results from the creation and issuance of money by a private corporation out of a power that rightfully and constitutionally belongs to the body of citizenry to whom the money is being "loaned". How can We the People be in "debt" to ourselves?

#3 – The compounding fee called "interest" attached to the supposed "debt" created via bank "loans" makes it impossible, even by the rules of the Feds own system, to "satisfy" the obligation so created in a final sense, because when the principal sum of the loan is issued, the money to pay the "interest" is not. The aggregate of "debt" that created the money supply can only be rolled over by continually "borrowing" ever more money into circulation.

Given that the "national debt" is the aggregate of the principal balances of all outstanding bank "loans" (public and private), that such "loans" are not real loans, that the resulting "debt" is not a legitimate debt, and that this "debt" cannot be satisfied in any case due to the compounding "interest" fees attached, how can our children ever pay it?

The straightforward answer is that they cannot, simply because the very idea of a "national debt" makes no sense. It is an abstraction that has no basis in reality. In truth, it is a belief system that the adult world pays tribute to because we think it is real.

The real burden we place on our progeny, therefore, is not in any objective sense some "debt" that they will inherit, but a belief in such. From the time they emerge from the womb, virtually every adult voice in their world is in effective (though not conscious) conspiracy to convince them that their future is already mortgaged away.

If the economic pundits have it right, when a newborn innocent draws first breath he will already "owe" some quarter-million dollars to a supposedly compassionate world that has gone so mad that this abject absurdity is deemed to be hardnosed, bottom-line "reality" from which to reckon his economic future.

But they have a secret; one which even they don't know. It is that the child is not in "debt". His future is not "mortgaged" (i.e. "death pledged") after all. In the economic aggregate there is no such thing as fiscal "debt". Its smoke-&-mirrors "substance" is the usurious bubble attached as a rider at the birth of money itself into the social flow, as alluded to in the private-bank-loan transaction.

All voices in the child's universe - teacher, politician, financier, scientist, psychologist, clergyman, TV personality, parent - conspire to insure that he will be inoculated against the secret; they being not cognizant of it themselves. If the spell is not broken, it will settle upon the youth a yoke of phantom "debt" which in hypnotic stagger he will bear to his grave. Let us resolve now that we disabuse his tender mind of this spirit-crushing bugbear.

Richard Kotlarz

The complete set of columns from this series is posted at the following websites.