US national debt accelerating at over a trillion/year in our asset-hole ‘debt supply’ system; demanding monetary reform & public banking yet?

hat tips: Prison Planetcnsnews

The US federal government debt is now $19 trillion, having risen over a trillion each year of the Obama administration.

This article will examine US economic status, and obvious solutions promoted by many of America’s brightest minds since Benjamin Franklin wrote a pamphlet how colonial Pennsylvania operated its government without taxes, and which we could easily do today.

Let’s examine just some of the facts of the current US economy that demonstrates its criminal status:

For Americans still zombiefied to “believe” in America, please embrace the reality that 40% of US children live at least one year of their lives in under-measured poverty, while oligarchs most responsible literally laugh in grandiose glee of the poverty they euphemise as “income inequality.” Please absorb this 1-minute reality check:

More game-changing economic data that confirm what we receive for economic leadership is literal criminal fraud:

6-minute video of wealth inequality in the US (now dated):

I could go on to literally ~100 areas of crucial concern; most showing obvious criminal acts requiring arrests to lawfully stop ongoing horrific damages and deaths.

Earth economics is upside down.

There are solutions:

Accelerating technology can and should provide:

  • more personal freedom from labor,
  • more beauty in infrastructure and nature,
  • greater joy in our freedom to create and explore our beautiful, powerful, and diverse virtues (something like “resource-based economics” as researched by The Venus Project).

15-minute video of obvious solutions: Mark Anielski and Ellen Brown’s powerful 15-minute response to an interview at the Seizing an Alternative conference (and here, with videos here) with former World Bank economist Herman Daly and co-author John B. Cobb of For the Common Good (video should start at 1:04:43):

The top three benefits each of monetary reform and public banking total ~$1,000,000 for the average American household, and would be received nearly-instantly.

Please read the above sentence a second time, then verify the following factual claims to confirm its objective accuracy.

Monetary reform is the creation of debt-free money by government for the direct payment of public goods and services. Creating money as a positive number is an obvious move from our existing Robber Baron-era system of only creating debt owed to privately-owned banks (a negative number) as what we use for money. Our Orwellian “non-monetary supply” of adding negative numbers forever causes today’s tragic-comic increasing and unpayable total debt. You learned these mechanics of positive and negative numbers in middle school, and already have the education and life experience to conclude with Emperor’s New Clothes absolute certainty that accelerating total debt is the opposite of having money. As a National Board Certified and Advanced Placement Macroeconomics teacher, I affirm this is also exactly what is taught to all economics students.

The public benefits of reversing this creature of Robber Barons are game-changing and nearly-instant. We the People must demand these, as .01% oligarchs have no safe way to do so without admission of literal criminal fraud by claiming that debt is its opposite of money.

The top 3 game-changing benefits of monetary reform:

  1. We pay the national debt in proportion to removing private banks’ ability to create what we use for money as debt in order to prevent inflation. We retire national debt forever.
  2. We fully fund infrastructure that returns more economic output than investment cost for triple upgrades: the best infrastructure we can imagine, up to full-employment, and lower overall costs.
  3. We stop the ongoing Robber Barons who McKinsey’s Chief Economist documents having ~$30 TRILLION in tax havens, and the Fed finding the US top seven banks creating shell companies to hide $10 trillion. This amount is about 30 times needed to end all global poverty, which has killed more people since 1995 than all wars and violence in all human history.

Public banking creates at-cost and in-house credit to pay for public goods and services without the expense and for-profit interest of selling debt-securities. North Dakota has a public bank for at-cost credit that results in it being the only state with annual increasing surpluses rather than deficits.

Top 3 game-changing benefits of public banking:

  1. a state-owned bank could abundantly fund all state programs and eliminate all taxes with just a 5% mortgage and credit card.
  2. a state-owned bank could create in-house and at-cost credit to fund infrastructure. This cuts nominal costs in half because, as you know, selling debt securities typically doubles the cost. For example, where I live we’re still dismantling the old Bay Bridge in NoCal from the upgrade that cost $6 billion, but the debt-service costs will add another $6 billion when it’s all paid.
  3. CAFRs (Comprehensive Annual Financial Reports) stash “rainy day” funds no longer required with a credit line from a public bank. In addition, the so-called “retirement funds” currently deliver net returns of just a few percent on good years, and negative returns on bad years (here, here). California’s ~14,000 various government entities’ CAFRs have a sampled-data total estimate of $8 trillion in surplus taxpayer assets ($650,000 non-disclosed assets per household, among California’s ~12.5 million households).

$1,000,000 of benefits per US household:

  • California’s CAFR data of ~$650,000 of assets per household is evidence of huge cash assets of similar magnitude in every state.
  • Paying the US national debt of ~$18 trillion saves ~$180,000 per household.
  • Ending state taxes in California to pay a budget of ~$170 billion saves each household ~$15,000, with similar savings in every state.
  • ~$30,000 per household savings annually: the American public would no longer pay over $400 billion every year for national debt interest payments (because almost 30% of the debt is intra-governmental transfers, this is a savings of ~$300 billion/year). If lending is run at a non-profit rate or at nominal interest returned to the American public (for infrastructure, schools, fire and police protection, etc.) rather than profiting the banks, the savings to the US public is conservatively $2 trillion (1). If the US Federal government increased the money supply by 3% a year to keep up with population increase and economic growth, we could spend an additional $500 billion yearly into public programs, or refund it as a public dividend (2). This savings would allow us to simplify or eliminate the income tax (3). The estimated savings of eliminating the income tax with all its complexity, loopholes, and evasion is $250 billion/year (4). The total benefits for monetary reform are conservatively over three trillion dollars every year to the American public. Three trillion is $3,000,000,000,000. This saves the ~100 million US households an average of $30,000 every year. Another way to calculate the savings is to figure those amounts per $50,000 annual household income (for example, if your household earns $100,000/year, you save ~$60,000 every year with these reforms). This savings represents a 60% raise for every US household’s income.
  • Related, if the ~$30 trillion hidden in tax havens by the .01% have $10-$15 trillion from Americans, and we count the Federal Reserve report that the US top seven banks have over $10 trillion stored, then the average US household could clawback ~$200,000 to ~$250,000.

Famous Americans already on record for these reforms:

Please understand that I represent likely hundreds of thousands of professionals making factual claims with objective evidence anyone with a high school-level of education can verify.

The Emperor’s New Clothes obvious pathway out of these mechanics of our “debt system” is to start creating debt-free money (a positive number) for the direct payment of public goods and services, and create public credit for at-cost loans (a negative number). I have three academic papers to walk any reader through these facts; an assignment for high school economics students, one for Advanced Placement Macroeconomics students, and a paper for the Claremont Colleges’ recent academic conference:

Teaching critical thinking to high school students: Economics research/presentation

Debt-damned economics: either learn monetary reform, or kiss your assets goodbye

Seizing an alternative: Bankster looting: fundamental fraud that “debt” is “money”


1) Of $60 trillion total debt, a conservative current interest cost of 5% is $3 trillion every year. Two trillion dollars of savings if the profits are transferred to the American public rather than to the banking industry is probably low. St. Louis Federal Reserve Bank:

2) The US GDP is ~$17 trillion. Three percent growth is moderately conservative.

3) Of the US Federal government’s ~$4 trillion annual budget, about $1.7 trillion is received from income tax.

4) Tax Foundation. Hodge, S, Moody, J, Warcholik, W. The Rising Cost of Complying with the Federal Income Tax. Jan. 10, 2006:


Note: I make all factual assertions as a National Board Certified Teacher of US Government, Economics, and History, with all economics factual claims receiving zero refutation since I began writing in 2008 among Advanced Placement Macroeconomics teachers on our discussion board, public audiences of these articles, and international conferences. I invite readers to empower their civic voices with the strongest comprehensive facts most important to building a brighter future. I challenge professionals, academics, and citizens to add their voices for the benefit of all Earth’s inhabitants.


Carl Herman is a National Board Certified Teacher of US Government, Economics, and History; also credentialed in Mathematics. He worked with both US political parties over 18 years and two UN Summits with the citizen’s lobby, RESULTS, for US domestic and foreign policy to end poverty. He can be reached at

Note: has blocked public access to my articles on their site (and from other whistleblowers), so some links in my previous work are blocked. If you’d like to search for those articles other sites may have republished, use words from the article title within the blocked link. Or, go to, paste the expired link into the box, click “Browse history,” then click onto the screenshots of that page for each time it was screen-shot and uploaded to webarchive. I’ll update as “hobby time” allows; including my earliest work from 2009 to 2011 (blocked author pages: here, here).



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  • “Who controls the issuance of money controls the government!” Nathan Meyer Rothschild

    January 18, 2016 The 21st Century: An Era Of Fraud

    In the last years of the 20th century fraud entered US foreign policy in a new way. On false pretenses Washington dismantled Yugoslavia and Serbia in order to advance an undeclared agenda. In the 21st century this fraud multiplied many times. Afghanistan, Iraq, Somalia, and Libya were destroyed, and Iran and Syria would also have been destroyed if the President of Russia had not prevented it. Washington is also behind the current destruction of Yemen, and Washington has enabled and financed the Israeli destruction of Palestine. Additionally, Washington operated militarily within Pakistan without declaring war, murdering many women, children, and village elders under the guise of “combating terrorism.” Washington’s war crimes rival those of any country in history.

  • February 1, 2016 The West Is Traveling The Road To Economic Ruin

    Michael Hudson is the best economist in the world. Indeed, I could almost say that he is the only economist in the world. Almost all of the rest are neoliberals, who are not economists but shills for financial interests.

    • diogenes

      Ellen Brown too — not in Hudson’s league for breadth & depth but a very useful advocate for key ideas and an historian of important facts. But Hudson, yes, amazing.

      • Thank you, for reading and commenting diogenes!

        • diogenes

          You’re welcome. Besides Hudson and Brown let’s add some key founders of American progressive economics:

          Henry George, Progress and Poverty
          Louis Brandeis, Other People’s Money
          Brooks Adams, The Theory of Social Revolutions
          Thorstein Veblen, Absentee Ownership
          Robert LaFollette, Autobiograph (for tactics)

  • Don Robertson

    Herman Daly says, “[…] moderation, courage, wisdom and justice […]” “[…] when the fan gets hit by you know what […]” “[…] authentic development […]” “[…] human solidarity […]” “[…] dignity of the human person […]” “[…] a true civilization of love […]”

    After that eruption of hound dog in the deep-fry vomit, I wasn’t about to watch giggly Ellen Brown. I’d seen enough, Carl.

    These people are asking they (or their similarly mindless ilk) be put in charge of the economy. They are making populist pleadings along the lines of some pull-it-out-of-your-ass humanitarianism that could only make matters worse, and would have led to far worse than where we are today, even if since the inception of this country they had their hands on the economic dildo they envision will deliver their enchanted, orgasmic civilization of environmental economics and love.

    Sustainability is a faulty populist notion that only justifies discontent, while providing a laughable, they didn’t know any better, apology for those whose heads should be hacked off.

    And all these supposedly omniscient, mealy mouthed, love-espousing, social mechanics, economic alchemists and soothsayers -should be put at the front of the line headed directly toward the business end of the ravenous guillotine of “human action,” to steal a corny catch phrase from the favorite author of those loser Libertarians.

    Maybe after Donald Trump gets through righteously and royally screwing things up, these people can get their Bernie Sanders elected. In the mean time people, understand, Obama has quite seemingly made murder legal in this country.

    So, it’s every man for himself, a same-old-same-old statement, if there ever was one. Ours is a civilization of every man for himself. And it works efficiently enough, if your brain is not all gummed-up holding out hope for the contrived message of these deluded folks who preach to the ubiquitous idiots of the world, that “all you need is love.” Trust me, these educated humanitarian types will supply you with the Vaseline and give you all the love you can stand once they get you hog-tied and bent over far enough.

    All you really need is to get a job, be frugal and put your money in the bank instead of wasting it on pizza, dope, tattoos and fancy cell phones. Is that so difficult????

    • Carl_Herman

      oops, sorry, Don; the video should have started at 1:04.43 for just 15 minutes of solutions with monetary reform mechanics. I’ll fix it when I get off work.

      The issue for solutions is that we are allegorically “hog-tied and bent over” in this debt-based monetary system. I could go on with the analogy, but you get the idea. Just as in the allegory, this suffering is not at all necessary other than perhaps the lesson to end obvious abuse. Ben Franklin documented we can operate a government for public goods and services without taxes. These mechanics should be known, professionally and publicly discussed, and field tested.

      • Don Robertson


        Let me first express my appreciation for not having been blocked from posting on WB in all these years. While I rarely find much of straight-up value here, I feel as a duty to make a post somewhere, sometime, occasionally just to set the record straight from my subjective point of view. I make that statement/confession, and recapture it before you jump too high, by stating unequivocally, everyone’s point of view, even everyone’s sense of what is rational, is a purely subjective judgment.

        And therein lies the problem of advocacy, which most often boils down to a demand for change. It’s all too easy to cherry-pick from our individual subjective realities, and find something we consider so egregious, we’re sure making the change is a no brainer… And too often such a thing is advocated with no brain.

        It’s been my observation that the real problem is change, and that, like in 1789, every change that comes along now, is making matters worse, like trying to fix a ruined soup, by adding more spices, and maybe a little pineapple will cure that foul taste.

        I don’t think so.

        Really what the human foible is, is that we are all subject to being convinced far too easily by the advocates of change. Congress continuously passes ever more laws, changing the landscape, and only rarely does it repeal a smattering. Based on “progressive” legislation new rules and regulations are passed without input from any legislative body, simply because some stinking bureaucrat has convinced himself and his minions over at the department of Catch-22, that change is needed. And we all end up standing interminably in these long Waiting for Godot lines ready to pay the fines that are the result.

        When I read history now, and I read the word, “barbarian” or similar epithets, I am convinced what I am reading about is propaganda, intentional or simply a writer piling on with all the other progressive dunces that advocate change because it’s couched in some phony civilized paradigm.

        You’re a great advocate. But great advocates are as common as trash in the streets, and really just the tip of the iceberg, the telltale sign, of the real problem. I play your foil, because I’m convinced the call for change is what ails humanity. I’m convinced it’s the unrequited and desensitized in humanity calling for change, always. Life is too good for it to be anyone else demanding more goddamned change.

        What humanity needs is for things to remain the same (or go backwards) for a thousand years. That would be real progress. So, in the future let’s talk about repealing some of the mistakes of the past, not blindly surrendering to more of the same bureaucratic and academic idiocy that’s continuously devalued our human existence since civilization began.

        • Carl_Herman

          Ok, Don, that’s fairly stated as your 1st Amendment Right (good luck finding that in a past of god-sent Kings) to interpret facts as you see best, and advocate for whatever policy you wish.

          As a professional academic, it’s simple: objective facts that are comprehensibly accurate as best we can offer is where we start to approach any topic we wish to understand.

          We then offer this allegorical “table of facts” to anyone who wants to comment, ask, interpret, find claims that don’t belong, find claims that are false, add claims that should be included, etc.

          Then, when all have had their say, we move naturally into the question of what we should do (if anything) about this topic; that is, what policy should we attempt? And, once we enact a policy, the cycle repeats with new facts being generated for our consideration.

          So! In terms of what a society uses for money, I’ve offered some facts of what I see in a context of history of obvious and shocking conditions with apparent solutions. I’d like an honest public and professional consideration of this topic that we’re currently being used as debt-slaves to service to a .01% parasite class.

          • Don Robertson


            Reducing income inequality (by raising the minimum wage, increasing income, property and inheritance taxes, or, otherwise meddling in currency schemes) will not make anyone richer, not even the poorest of the poor -over the long term-. The depth of a highly, socially and economically stratified society makes for a larger cup that is filled much higher. In the case of the U.S., ours is a very large cup that is overflowing.

            And the role of the FED is clearly not, never has been, and never will be to promote any such fable of making the world (or the country) a better place by addressing income inequality or any other nonsense notions of fairness.
            I favor getting rid of the minimum wage, as getting rid of it is the only course toward full employment. Minimum wage is as progressive in the ideal, as notions of reparations, both of which are disincentives to working toward personal fulfillment. “It’s only a minimum wage job…”

            The role of the FED is about a competition between economic systems on a worldwide scale, and defending the status quo, because the U.S. and the west in general still lead the world. The alternative is currently only a stillborn nightmare. China is done because of what the FED has accomplished, regardless how much you or anyone else might dislike the effects on our own splendid economy.

            Yammering advocates who would tinker (given half a chance) don’t have a clue about the infinite complexity with which they wish to claim competence over. Many things in the economy act as a limiting-governor, keeping the whole thing from blowing up and being taken over by hacks. No one can understand all the limiting-governors at work. And allowing tinkers to attempt to tailor a better economy just because they have an idea about how such things works is a damned fool idea.

            Given the wheel to steer, these advocates would be likened letting someone build a skyscraper because they’d walked by so many that were under construction, fly a jumbo jet, or stand at the helm of nuclear submarine under attack.

            Good luck. The “.01% parasite class” is at the helm of a massive undertaking not to be underestimated or taken for granted.

            The worst case scenario is improbable, and the advocate-tinkers get control. In that case, all the paranoid preppers will be the only ones who had the best course planned.

          • Don Robertson

            The march of the humanitarian fruitcakes goes mainstream. You see, once upon the slippery slide of inequality, arguing for just about anything is possible. This Bloomberg article calls it an inequality-public-duty to hand out Prozaq.


            Of course, Bloomberg is all about spreading more silly “progress” myths. LoL


  • diogenes

    No, Carl, this is JUST WRONG. We need to leave our country’s economy — the economy of 330 million people — under the ownership and control of 0.001% of us. Why? Because, don’t you see, it works really really well for them! You can tell because they have all the money. In 1867 the wealthiest 2% of Americans owned 5% of all wealth. Since the 1890s, and now, they own over 65%. Why tamper with success?

    • Carl_Herman

      By golly, diogenes, YOU’RE RIGHT! But we could be doing so much more to help; I’m so ashamed! I will immediately construct an article arguing for voluntary death centers for those inclined to help depopulate Earth from us unworthy ones. Next, I should support “bail-ins” for our big banks that must become too-bigger so as not to fail.

      Ahhhh, I should get more creative… ok! I got one: mandatory “booster vaccines” to attend the Super Bowl, Disneyland, every semester at schools, and entering super markets! Everyone moving to “camps” with little microhouses to save the Earth! Surrendering all guns because they are bad!

      I’m pumped and will work on this!!!

  • rwmctrofholz

    Pretty unusual that a candidate Obama vowed to stick it to the rich, and still demonizes the wealthy even as recent as this week, yet the richer are richer than ever and the poor are poorer now.