At 12/3/12 08:48 AM, leanlifter1 wrote:
The main problem with Debt Based Fiat Currency is that is assumes that the nations economy will be able to expand at an ever increasing infinite rate
With the notable exception of 2009, this has historically been the truth. It's interesting to note (for you conservatives out there) that at no point during Bush's administration was GDP growth higher under his piss-from-the-clouds tax policy than it was under Clinton's build-the-middle-class tax policy.
On point, though, if you take a look at historical trends, with exceptions here and there, the US has managed an incredible history of continued economic growth. Historically, from 1947 until 2012, the United States GDP Growth Rate averaged 3.2 Percent reaching an all time high of 17.2 Percent in March of 1950 and a record low of -10.4 Percent in March of 1958. The United States has one of the most diversified and most technologically advanced economies in the world. Finance, insurance, real estate, rental, leasing, health care, social assistance, professional, business and educational services account for more than 40 percent of GDP. Retail and wholesale trade creates another 12 percent of the wealth. The government related services fuel 13 percent of GDP. Utilities, transportation and warehousing and information account for 10 percent of the GDP. Manufacturing, mining, and construction constitute 17 percent of the output. Agriculture accounts for only 1.5 percent of the GDP, yet due to use of advance technologies, the United States is a net exporter of food. This page includes a chart with historical data for the United States GDP Growth Rate: http://www.tradingeconomics.com/united-states/gdp-growth
which we are witnessing today is not true
Blind and willful ignorance of the facts does not make your argument true.
as public and national debts remain out of control
What exactly do you mean by "public" debts? In terms of national debt, most economists will argue that debt is a good thing. NPR posted a good explanation of national debt, probably aimed for you, called "National Debt For Beginners." Link. The question remains how much debt is good, but, long story short, even at record high levels of debt in the past we have been able to pay it down over time. There is no reason to think that if we make the right investments to improve our economy that we will not be able to do the same.
leaving only the choice of how much of the liabilities will go into default
This assumes that they will but... considering that current treasury bonds are going at a very low interest rate and we are still paying the interest on those treasuries, it is not likely to happen unless the Tea Party performs a repeat of their 2011 debt ceiling stranglehold. And at that point, it will be the fault of a small minority of American politicians, not President Obama.
and how many of the tangible assets will be liquidated to pay off the benefactors AKA "The Fed".
Again, this relies on faulty assumptions that can't be proven and are unlikely to happen.
History has shown us that all paper fiat monetary systems will collapse when the ideal of interest/Debt is attached to the nations currency.
Only in astronomical levels, as was done with Germany post-WWI when they were forced to pay reparations for the damages they had caused throughout the rest of Europe. Historically there are other reasons these systems have failed, almost never for the same reason. Most had to do with significant, revolutionary political upheavals or the inherent greed of monarchs and emperors. Neither of which we are currently facing here in the US.
After the monetary system crumbles and they decide enough is enough
Once again, faulty assumptions and empty rhetoric.
the only remains will be the last tangible capital assets that the banks have not yet repossessed to pay back their collective benefactor "The Fed".
You really don't understand debt, do you? If your scenario would happen (which is unlikely), the Fed would not be the one getting paid back. They wouldn't even be the ones making the payment. It would be the Treasury having to "sell off assets" to pay off the people / entities who have bought US Treasury bonds and, in so doing, loaned money to the US government.
I hope your Government has a good social welfare policy after it locks you guy's up in the "FEMA" camps
Are you kidding me? Someone needs to remove the anal probe that ET left in your ass and surgically remove the tinfoil hat you are wearing because I swear, boy, you are dumber than a box of rocks that has been put in a diamond-tipped blender and left on puree too long.
under the guise of "National Security" when the monetary system crashes completely and all the sheep that rely on institution for life support go mental because the whole financial grid gets shut down by default and they no longer can buy thy bread in the modern day bread lines AKA WallMart.
Do I really need to repeat the arguments I stated above? Okay, I will.
All of your arguments rely on a major set of faulty assumptions that are extremely unlikely to happen unless you are still trapped in the same kind of bubble that Republicans were trapped in during the 2012 election cycle. It's time to escape your little bubble of anti-reality and join the rest of us who actually have real, concrete ideas about the way things work and why they work. Come join us, we have pretty things like puppies, porn and sunshine. It's not a scary place, I promise...