Deficit spending is fraudulent inducement

Every time congress submits a budget that requires deficit spending government commits fraudulent inducement. Government is spending money that taxpayers do not have, can’t afford and will not repay. The fed and government realize taxpayers will never pay down an exponentially expanding national debt.

One likely option is a default on the national debt which is actually defaulting on US central banking system. Second option continues to roll debt over into a cycle of perpetual refinancing slavery. A growing number of people will technically end up working for the US government through bailouts.

Government may decide to cut pay as a sign that it is serious about reducing debt. International financial creditors might in turn forgive the US of some debt. Deficit spending is equivalent to a thief threatening to rob the US Treasury if taxpayers do not hand over $700 billion. Blackmail is a covert form of fraudulent inducement.

Deficit spending also transfers money to financial institution in the form of interest payments on funds loaned to government. Government in return pumps this money into schemes such as bailout, stimulus, cash for clunker and TARP.

The most insidious form of financial indentured servitude is exponential growth in interest payments on an inflating national debt. The US Treasury and the Federal Reserve System may have lost control of money creation because of an unchecked derivatives industry.

Over $600 trillion in derivative transactions has dwarf the total monetary worth of the entire globe. The central bank system possibly allowed the extension of too much credit into a global carry trade currency. Barrowing money and swapping currencies for dollars at zero percent interest rates is shoring up an inflationary foundation.

As of 2008 the entire global central bank system held less than $1.2 trillion in gold reserves. Global central bank system does not have enough gold reserve to unwind a growing $12 trillion US national debt. Central banks are purchasing gold which is appreciating in value at exponential rates.

Central banks have reverted to net buyers of gold as price escalates towards the stratosphere thereby creating a self perpetuating increase in cost. An inflationary cycle by carry trade dollars buying less gold at higher prices has begun. Price will also increase partly because of a drop in production and a limit on sources for retail consumption.

Would the total collapse of the US dollar bring the price of gold back from the stratosphere? If the dollar is no longer the carry trade currency how high will interest rate rises. What will American use as a form of currency, the AMERO?