The value of the dollar, because inflation is about 0.23 cents since there is no backing except the labor of the collateral which is you and me. Yes your labor, blood, sweat, and tears pays off the United States Corporation’s debt to the International Bankers that control us all, the Federal Reserve.
Another issue of concern to many is the role that foreign investors play in financing the debt. Many foreign investors are attracted to U.S. investments, including Treasury securities.
On the positive side, this foreign investment helped finance the huge U.S. Federal budget deficits of the 1980s and 1990s and kept interest rates lower than they otherwise would have been. However, servicing the dollar debt financed by foreign savings can have negative implications for our economy. When we send principal and interest payments to foreign holders of our debt, the Federal Reserve, we are temporarily transferring wealth away from the United States Corporation. The net result is a reduction in your standard of living.
In addition, an inflow of foreign savings tends to affect the strength and value of the dollar. Since Treasury securities can be purchased only with U.S. dollars, foreign demand for these securities increases the demand and value for dollars, raiseing the value of the dollar in foreign exchange markets. This more highly valued dollar, by raising the price of U.S. goods in international terms, places further burdens on the economy, particularly for domestic producers who compete with foreign producers for sales both here and abroad.
If the Fed monetizes the debt, the result would be another burden, inflation. When the rate of money growth is greater than the economy’s ability to produce additional goods and services through your labor, the result is inflation, too much money chasing too few goods. In the short term more rapid rates of money growth may reduce interest rates, but the net long-term effect would be to foster higher rather than lower rates.
Another burden imposed by the debt is the government’s interest payments. When the government borrows, it is obligated to pay interest. These interest payments have become a significant percentage of total government spending, which in turn becomes harder to reduce.
Now You can use the government’s debt to pay off your debts and loans at the Department of Debt Loan Payoff online at DebtLoanPayoff.com. It is the greatest value of the dollar you will ever find. This money species has currently been accepted by banks.
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