Page 125 - Fruits from a Poisonous Tree

of the picture, the tragic absurdity of our hopeless position is almost
incredible, but there it is. It is the most important subject intelligent
persons can investigate and reflect upon. It is so important that our
present civilization may collapse unless it becomes widely understood
and the defects remedied very soon.” – Robert Hemphill, former Credit
Manager, Fed Bank of Atlanta (in testimony before the Senate)

IMPOSSIBLE TO PAY THE NATIONAL DEBT

“The one aim of these financiers is world control by the creation of
inextinguishable debts.” – Henry Ford
The money to pay the interest on a debt must come from the same
source as the debt principal. The only problem is that the money to pay the
usury has never been created! Loan repayments to banks reduce the money
supply. The Federal Reserve removes the money from circulation when a
debt is repaid. To keep the money supply from shrinking, more borrowing is
necessary. It is mathematically impossible to pay off the debt principal plus
the interest. In your attempt to avoid the day of reckoning, you are forced
to take on increasing amounts of debt to pay not only the principal of the
debt, but the onerous interest. Your debt escalates until you are forced into
bankruptcy. This phenomenon is not unique to government borrowing; it
also applies as well to individuals and businesses. We need to recognize the
perils of a private sector debt that is now at least five times greater than that
of the Federal government’s debt!
A Myth We Live By – The reason we have a $6 trillion national debt and
$17 trillion private debt is because people, government, and business have
spent beyond their means, right?
Wrong!
The fact is, our monetary system guarantees that debt must increase
regardless of what people, business or government do or do not do, whether
or not they balance their budgets. Suppose I lend you ten ball bearings, the
very last ten in existence, with the condition that you return ten to me plus
one more ball bearing as interest. If you knew there were only ten in existence,
you would not accept this offer. But suppose you are naive about the creation
and circulation of ball bearings and you accept the terms; when repayment
time comes, you possess only ten, having been unable to get the nonexistent
eleventh ball bearing. You lose your house, which was pledged as collateral.

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