Whether Republican Mitt Romney or Democrat President Barack Obama won the presidency, neither of them has a plan to correctly address the most pressing economic issue in the United States, and that is reducing our national debt to zero in a way that will not send the economy into a massive depression.
Specifically, our money system is not what we have been led to believe. The creation of money was "privatized" in 1913 to a private money cartel named the Federal Reserve. While the Constitution originally granted the government the authority to create money, our government ceded this power to a private central bank which manufactures money out of thin air, then loans it to them at interest.
Professor Henry C.K. Liu, an economist who graduated from Harvard and chaired a graduate department at UCLA, calls our current monetary system a "cruel hoax." Most people in America do not even realize the Federal Reserve is a private organization. They think either the government would not be stupid or corrupt enough to allow a private banking cartel to run the country via a monopoly on money or the word "federal" means that it must be part of the government.
Unfortunately. both are equally wrong.
In other words, since we borrow money at interest from a private central bank, all money is "debt" loaned to us at interest. In this way, the real wealth of all Americans has been siphoned to the owners of the private Federal Reserve (Citibank, JP Morgan, Goldman Sachs, etc.) as interest on debt-based money.
It is no accident the Internal Revenue Service was created in 1913, the same year as the Federal Reserve. If money was going to be loaned to the federal government at interest, the government needed a way to increase revenue, so in 1913, the federal income tax was instituted specifically to coerce taxpayers to pay the interest due on the national debt. Estimates for 2012 are our national debt interest payment will be $540 billion, an enormous sum of money which does not need to be siphoned from the hardworking American taxpayer.
It is precisely this national debt which is killing our economic prosperity. By instituting the income tax to generate additional revenue, the government decreases the available capital that would be used for productive investments in the economy. Since the government cannot use factories, office buildings or oil wells to make debt-interest payments, this forces all of us to liquidate productive investments into cash payable to the government, thereby drastically reducing capacity for economic growth. The cataclysmic social and economic divisions in America are directly caused by the charging of interest on money.
Unfortunately, we cannot just pay down the national debt. All of our money is created out of debt, and under this debt-money system, to reduce the debt is to reduce the national money, which would send us into a severe economic depression.
You see, people do not decide they no longer want jobs done or articles produced. An economic depression is caused when there are not enough pieces of paper and electronic money in circulation to pay for those goods and services.
This is the key point you'll never hear from the federal government: We cannot reduce our national debt until we stop borrowing money from a private central bank. Instead, we must return the money issuing power back to Congress, debt-free, and as per the Constitution.
Thomas Jefferson, after watching the national debt mushroom under a private central bank prior to the Federal Reserve wrote, "I wish it were possible to obtain a single amendment to our Constitution ... taking from the federal government the power to borrow money." Look at how taxation could be reduced dramatically or even eliminated if our government — the people, in other words — was not paying phenomenal sums in interest on borrowed money.
From Greece, Rome, Carthage, England from 1100 to 1694, colonial America, Abraham Lincoln issuing "greenbacks" to pay for the Civil War, Canada from 1935 to 1974 and Guernsey to this day, history is flowing with numerous examples on how sovereign nations, many with little gold or silver, economically flourished by issuing sovereign, debt-free money which benefited all citizens equally.
When you hear a victorious federal politician say, "We are going to pay down our national debt," please contact them in January, and ask them: Exactly how can you accomplish this if you continue to borrow money at interest from a private central bank?