American Debt Crisis - A Warning To Millions Of Americans

[Taco]

I can only hope that some of you will take this video seriously.

http://www.youtube.com/user/cgreene34

[Taco]

I found some other videos on the economy that are scary, if you not terrified you should be.

Poverty Numbers Hit The Highest Level In US History
http://www.youtube.com/watch?v=9O5kmPI8 ... re=related

Economic Collapse Confirmation
http://www.youtube.com/watch?v=57tIsome ... re=related

US Dollar In Dangerous New Phase
http://www.youtube.com/user/usawatchdog

[Hook]

We are definitely going to have a default in this country. It will be accomplished through money printing and devaluing the currency to pay off current bondholders. It is inevitable.

But that doesn't mean that it is guaranteed to happen during this economic cycle. So I wouldn't advise people to cash in all their investments and head to the hills to live in a cave. We've had bad economies before, and everyone was saying "this is the big one", and it ended up not being. Eventually it will be "the big one", so you need to have hedges all the time, like owning gold and/or silver. But don't believe you can know when the Great Default will happen.

Just like everything else, have some diversification so that you have some asset classes that go up in good times (stocks) and some that go up in bad times (gold).

[C.J.]

It's been BAD for a long time now. The problem was, the US has been in "slow-boil" mode for over 20 years. I've heard a frog won't mind being boiled if the temperature transition to SUPER HOT is slow and gradual.

Now, things are getting MUCH worse, but only in the bigger picture, some 10 years down the road. But the thing is, time goes by fast, and in a couple years it'll go by FASTER. So the best solution is to invest. People can start with buying things that have value and then selling them. People need to know how to financially prepare themselves for being in great poverty before it's too late.

[NorthAmericanguy]

We are definitely going to have a default in this country. It will be accomplished through money printing and devaluing the currency to pay off current bondholders. It is inevitable.

But that doesn't mean that it is guaranteed to happen during this economic cycle. So I wouldn't advise people to cash in all their investments and head to the hills to live in a cave. We've had bad economies before, and everyone was saying "this is the big one", and it ended up not being. Eventually it will be "the big one", so you need to have hedges all the time, like owning gold and/or silver. But don't believe you can know when the Great Default will happen.

Just like everything else, have some diversification so that you have some asset classes that go up in good times (stocks) and some that go up in bad times (gold).

I'm thinking along the lines of what you said, although prepare for me means investing in more tangible things.

Prepare for me means:

1. Valid passport

2. 1500 for emergency plane ticket

3. Enough food to last me for 2 months

4. A basic Military knife

5. A basic handgun

6. 2000k at least in savings (and not all of it will be in the bank)




You figure, what good is to throw all this money into gold and silver when the greater issue is that if the SHTF, food and water will be the number one priority since few people now grow their own food and rely on the city to provide clean water for them.

[odbo]

It's been BAD for a long time now. The problem was, the US has been in "slow-boil" mode for over 20 years. I've heard a frog won't mind being boiled if the temperature transition to SUPER HOT is slow and gradual.

The American sheeple has long ago lost his/her ability for self-preservation aka survival instinct. They'd rather die than to do something "hard." The rest of the sheeple worldwide are not as completely demoralized yet. If they were shown they are about to be culled they'd actually do something about it.

[Rock]

We are definitely going to have a default in this country. It will be accomplished through money printing and devaluing the currency to pay off current bondholders. It is inevitable.

But that doesn't mean that it is guaranteed to happen during this economic cycle. So I wouldn't advise people to cash in all their investments and head to the hills to live in a cave. We've had bad economies before, and everyone was saying "this is the big one", and it ended up not being. Eventually it will be "the big one", so you need to have hedges all the time, like owning gold and/or silver. But don't believe you can know when the Great Default will happen.

Just like everything else, have some diversification so that you have some asset classes that go up in good times (stocks) and some that go up in bad times (gold).

Actually, money printing and devaluing the currency is way for the government to reduce their real debt burden. By engaging in such action, they effectively dilute the debt they owe. It works both with domestic and foreign bond holders. As long as US$ remains the primary world reserve currency, US has the power to screw the big foreign holders of our sovereign debt such as China and Japan. And don't think that it will loose its status anytime soon. After all, there really are no viable alternatives. Don't think that Euro, Japanese Yen, Gold, or Chinese Yuan could take on such a role in the next couple decades. It won't happen. So why should the US default when it can simply print more money. Governments which default typically owe foreign hard currencies which of course they have no power to manufacture.

US position is different. Our debt to GDP is high enough that the annual interest burden does eat into our budget. But its not off-the-charts high like some countries. Even if Fed decides to put-brakes on stimulative monetary policy (which they might be starting to slowly do), a modest reduction in military spending (the biggest item of our annual budget) would allow us to begin aggressively paying down our national debt.

The last so-called big-one was Great Depression which lasted around 17 years. But it was the tail-end (war years) where it looked like the world might actually end. The world will end...whenever it ends. If it does happen, chances are very strong that it will be eons after your body is fertilizing petunias. Your natural death is much more predictable. You can likely get it to within 10-15 years give or take. So plan around that date, not the ones being thrown out by the doomsday gurus.

[Taco]

I can only hope that some of you will take this video seriously.

http://www.youtube.com/user/cgreene34

This is the correct link.

http://www.youtube.com/watch?v=gCPRfRQf ... ideo_title

[Rock]

We are definitely going to have a default in this country. It will be accomplished through money printing and devaluing the currency to pay off current bondholders. It is inevitable.

But that doesn't mean that it is guaranteed to happen during this economic cycle. So I wouldn't advise people to cash in all their investments and head to the hills to live in a cave. We've had bad economies before, and everyone was saying "this is the big one", and it ended up not being. Eventually it will be "the big one", so you need to have hedges all the time, like owning gold and/or silver. But don't believe you can know when the Great Default will happen.

Just like everything else, have some diversification so that you have some asset classes that go up in good times (stocks) and some that go up in bad times (gold).

I'm thinking along the lines of what you said, although prepare for me means investing in more tangible things.

Prepare for me means:

1. Valid passport

2. 1500 for emergency plane ticket

3. Enough food to last me for 2 months

4. A basic Military knife

5. A basic handgun

6. 2000k at least in savings (and not all of it will be in the bank)




You figure, what good is to throw all this money into gold and silver when the greater issue is that if the SHTF, food and water will be the number one priority since few people now grow their own food and rely on the city to provide clean water for them.

Come-on NAG. What make you so certain that we are going to have a default in the USA? Why hasn't it happened yet in countries with much bigger structural problems such as Japan? And if it does happen, do you think your preparations will help much? What are you gonna do with your knife and gun? Fight-off bears? A debt default is not the end of a country. Look at Russia, Iceland, Argentina, Thailand, or Indonesia for instance. All have suffered major defaults in last 15 years.

Anyway, if you really are so sure the US is going to default on a significant portion of its Treasury obligations, why don't you do what many of the Argentinian Jews did soon before the shit hit the fan there - liquidate domestic assets and move them to overseas currencies and investments. Many also got a second citizenship years earlier from Israel or other countries. A valid US Passport is just an reminder that you are locked into the US reporting and tax system for life unless you get a second nationality and renounce your birth citizenship at a US consulate overseas.

[Hook]

Actually, money printing and devaluing the currency is way for the government to reduce their real debt burden. By engaging in such action, they effectively dilute the debt they owe. It works both with domestic and foreign bond holders. As long as US$ remains the primary world reserve currency, US has the power to screw the big foreign holders of our sovereign debt such as China and Japan. And don't think that it will loose its status anytime soon. After all, there really are no viable alternatives. Don't think that Euro, Japanese Yen, Gold, or Chinese Yuan could take on such a role in the next couple decades. It won't happen. So why should the US default when it can simply print more money. Governments which default typically owe foreign hard currencies which of course they have no power to manufacture.

US position is different. Our debt to GDP is high enough that the annual interest burden does eat into our budget. But its not off-the-charts high like some countries. Even if Fed decides to put-brakes on stimulative monetary policy (which they might be starting to slowly do), a modest reduction in military spending (the biggest item of our annual budget) would allow us to begin aggressively paying down our national debt.

The last so-called big-one was Great Depression which lasted around 17 years. But it was the tail-end (war years) where it looked like the world might actually end. The world will end...whenever it ends. If it does happen, chances are very strong that it will be eons after your body is fertilizing petunias. Your natural death is much more predictable. You can likely get it to within 10-15 years give or take. So plan around that date, not the ones being thrown out by the doomsday gurus.

The thing is, printing money to dilute your debt is just another form of default, because you are paying back with less real value. It is a form of default that governments like because they don't have to come clean about being bankrupt. They can blame speculators, greedy capitalists, etc. for the inflation they create, but never themselves. If you counterfeited money in your basement to pay off your mortgage, the effect would be the same, you never payed back with something of real value. In essence, defaulting on your loan.

You are correct that the dollar will probably remain the world's reserve currency for at least another 10 years because of how much worse everyone else is doing. But that doesn't change the fact that printing a bunch of money will devalue it and cause inflation. You can't get something for nothing. Not even the government.

As for paying down our debt, that possibility has long since left the station by politicians that have kicked the can down the road. If you include Medicare, Medicaid, and SS, our unfunded liabilities are around $100 trillion. This is the true debt. Even if we cut all non-entitlement government spending and taxed 100% of all income above $100,000 a year, we couldn't pay it off. In about 10 years, the Big Three entitlement programs are going to consume 100% of all tax receipts. This is obviously is unsustainable.

You are correct that a default whether done honestly (outright repudiation), or dishonestly (printing money), isn't going to be the end of the world. But people that do just what you suggested to the poster above and diversify their financial instruments across several countries (Particularly ones that aren't in the IRS's back pocket) will do much better in a financial catastrophe. Besides, it is better to have money outside the country just to have something if the IRS goes hog-wild on your assets, or you get sued. Foreign holdings are gonna be very hard for your ex or some ambulance chaser to expropriate.

[Rock]

Actually, money printing and devaluing the currency is way for the government to reduce their real debt burden. By engaging in such action, they effectively dilute the debt they owe. It works both with domestic and foreign bond holders. As long as US$ remains the primary world reserve currency, US has the power to screw the big foreign holders of our sovereign debt such as China and Japan. And don't think that it will loose its status anytime soon. After all, there really are no viable alternatives. Don't think that Euro, Japanese Yen, Gold, or Chinese Yuan could take on such a role in the next couple decades. It won't happen. So why should the US default when it can simply print more money. Governments which default typically owe foreign hard currencies which of course they have no power to manufacture.

US position is different. Our debt to GDP is high enough that the annual interest burden does eat into our budget. But its not off-the-charts high like some countries. Even if Fed decides to put-brakes on stimulative monetary policy (which they might be starting to slowly do), a modest reduction in military spending (the biggest item of our annual budget) would allow us to begin aggressively paying down our national debt.

The last so-called big-one was Great Depression which lasted around 17 years. But it was the tail-end (war years) where it looked like the world might actually end. The world will end...whenever it ends. If it does happen, chances are very strong that it will be eons after your body is fertilizing petunias. Your natural death is much more predictable. You can likely get it to within 10-15 years give or take. So plan around that date, not the ones being thrown out by the doomsday gurus.

The thing is, printing money to dilute your debt is just another form of default, because you are paying back with less real value. It is a form of default that governments like because they don't have to come clean about being bankrupt. They can blame speculators, greedy capitalists, etc. for the inflation they create, but never themselves. If you counterfeited money in your basement to pay off your mortgage, the effect would be the same, you never payed back with something of real value. In essence, defaulting on your loan.

You are correct that the dollar will probably remain the world's reserve currency for at least another 10 years because of how much worse everyone else is doing. But that doesn't change the fact that printing a bunch of money will devalue it and cause inflation. You can't get something for nothing. Not even the government.

As for paying down our debt, that possibility has long since left the station by politicians that have kicked the can down the road. If you include Medicare, Medicaid, and SS, our unfunded liabilities are around $100 trillion. This is the true debt. Even if we cut all non-entitlement government spending and taxed 100% of all income above $100,000 a year, we couldn't pay it off. In about 10 years, the Big Three entitlement programs are going to consume 100% of all tax receipts. This is obviously is unsustainable.

You are correct that a default whether done honestly (outright repudiation), or dishonestly (printing money), isn't going to be the end of the world. But people that do just what you suggested to the poster above and diversify their financial instruments across several countries (Particularly ones that aren't in the IRS's back pocket) will do much better in a financial catastrophe. Besides, it is better to have money outside the country just to have something if the IRS goes hog-wild on your assets, or you get sued. Foreign holdings are gonna be very hard for your ex or some ambulance chaser to expropriate.

Hook, we are delving into complex territory here. Let me address what I can now.

1. Printing money is actually playing within the rules even it it somehow seems unethical. Of course, if you take it too far (ala present day Zimbabwe or several LatAm nations in the 80s), you will destroy your economy. But if you do it in a controlled fashion within limits, it can be a viable monetary and economic strategy. Fiat currency systems are made this way by design. Controlling the world's reserve currency gives us special power within the current system. Just remember, those countries chose to buy our debt because we offered the best alternative. Other bond markets including Europe's are just not big enough to absorb all that trade capital. Remember, in spite of our relative wealth decline, growing rich-poor gap, and social problems, we still have the advantage as the world's largest economy, military power, and controller of the world's money. Might prevails until someone can beats it.

I don't think any type of monetary system used in history has ever been perfect for avoiding or even controlling economic cycles and crises. The good thing about fiat systems is that they allow central banks to manage money supply and to some extent, mute economic cycles. The bad thing is that they may encourage politicians, who tend to be most concerned about short term performance, to use monetary policy to postpone structural adjustments until they build up to a tipping point (usually long after they are out of office).

2. Regarding the numbers, anyone who wants to get an idea of where we stand should spend some time with a calculator to play around with some of the published figures. Don't just get sucked into the sensationalist Youtube vids. Currently, gross debt is around 15 tn or nearly 100% of GDP, still within the bounds of reason as a certain amount of leverage can be good. A figure closer to 50% would be healthier for most countries. But since we can borrow so cheaply given our reserve currency and the current state of our bond market, this debt only costs us 1.3% per year or just 6% of our annual budget. At those levels, debt-to-GDP of 100-150% is easy to service and maintain.

At the federal level, we spend around 3.5 tn but get just 2 bn in tax receipts, 1.5 tn deficit per year. The last time we were in surplus was late years of Clinton admin when stock market was on fire and capital gains taxes were generating huge amounts of extra tax revenue. Keep in mind that from a historical perspective, aggregate federal tax rates in the US are at record low levels. Higher taxes overall would shrink the annual deficit. If we slashed military spending (20% of total budget), that would help a lot too.

Now the number which you throw-out of 100 tn is something I need to do more research on. It may be separately funded but let me get back to you on it. Currently, Social Security payments account for 20% of total budget and Medicare + Medicaid another 23%. So they are huge numbers. Moreover, demographic trends will push them up a lot over time. This is an area where at some stage, general public might get screwed to some extent. Personally, I've never paid into either system except during high school employment.

Another key issue which should be considered are the debt levels of state and local governments. Since my family is from Illinois, I am all too aware of how politicians can go 'third world' and steal massive amounts from the public. I will try to look more into this too.

3. The US is a dangerous place to hold assets for reasons you mentioned above. The arm of the IRS/Treasury and Department of Justice can sometimes extend beyond borders. But its next to impossible for all other creditors. It behooves US people with significant assets to expatriate them if they are portable enough or research and implement effective trust structures to take over their ownership if they are stuck in the US (real estate, farmland, etc).

4. There are many conditions required for a currency to gain global reserve status. Its not just about healthy the economy its tied to. For example, Switzerland had a very strong economy for awhile. But its highly unlikely that the Swiss Franc could ever become a world or even pan-European reserve currency. Relative size of the economy is a big factor is it must to a certain extent act as the world's secondary central bank. That would indicate the US, China, Japan, and Germany.

China still has a nascent and closed currency. It may take it a decade or more just to join the ranks of full convertibility and another several years for it to become freely traded on secondary markets and that's assuming the PRC government would take it in that direction. Currently, there is a separate offshore Chinese currency in HK (RMK) which generally trades at a slight premiums or discounts to RMB. China's economy is also to a large extent driven by US consumption which makes the current system (US in charge of reserve currency) more viable IMO.

Japan's debt to GDP ratio of over 200% and has had an insular and chronically stagnant economy for last 2 decades (some would say its a victim of US exchange rate policy).

Germany, which is already a bit too small to act as world's bank of last recourse is already wrapped-up in Euro problem and periphery country problems. It is also heavily exposed to impending China slowdown which may wreak havoc on its export economy.

[oiltradingacademy]

Actually, money printing and devaluing the currency is way for the government to reduce their real debt burden. By engaging in such action, they effectively dilute the debt they owe. It works both with domestic and foreign bond holders. As long as US$ remains the primary world reserve currency, US has the power to screw the big foreign holders of our sovereign debt such as China and Japan. And don't think that it will loose its status anytime soon. After all, there really are no viable alternatives. Don't think that Euro, Japanese Yen, Gold, or Chinese Yuan could take on such a role in the next couple decades. It won't happen. So why should the US default when it can simply print more money. Governments which default typically owe foreign hard currencies which of course they have no power to manufacture.

US position is different. Our debt to GDP is high enough that the annual interest burden does eat into our budget. But its not off-the-charts high like some countries. Even if Fed decides to put-brakes on stimulative monetary policy (which they might be starting to slowly do), a modest reduction in military spending (the biggest item of our annual budget) would allow us to begin aggressively paying down our national debt.

The last so-called big-one was Great Depression which lasted around 17 years. But it was the tail-end (war years) where it looked like the world might actually end. The world will end...whenever it ends. If it does happen, chances are very strong that it will be eons after your body is fertilizing petunias. Your natural death is much more predictable. You can likely get it to within 10-15 years give or take. So plan around that date, not the ones being thrown out by the doomsday gurus.

The thing is, printing money to dilute your debt is just another form of default, because you are paying back with less real value. It is a form of default that governments like because they don't have to come clean about being bankrupt. They can blame speculators, greedy capitalists, etc. for the inflation they create, but never themselves. If you counterfeited money in your basement to pay off your mortgage, the effect would be the same, you never payed back with something of real value. In essence, defaulting on your loan.

You are correct that the dollar will probably remain the world's reserve currency for at least another 10 years because of how much worse everyone else is doing. But that doesn't change the fact that printing a bunch of money will devalue it and cause inflation. You can't get something for nothing. Not even the government.

As for paying down our debt, that possibility has long since left the station by politicians that have kicked the can down the road. If you include Medicare, Medicaid, and SS, our unfunded liabilities are around $100 trillion. This is the true debt. Even if we cut all non-entitlement government spending and taxed 100% of all income above $100,000 a year, we couldn't pay it off. In about 10 years, the Big Three entitlement programs are going to consume 100% of all tax receipts. This is obviously is unsustainable.

You are correct that a default whether done honestly (outright repudiation), or dishonestly (printing money), isn't going to be the end of the world. But people that do just what you suggested to the poster above and diversify their financial instruments across several countries (Particularly ones that aren't in the IRS's back pocket) will do much better in a financial catastrophe. Besides, it is better to have money outside the country just to have something if the IRS goes hog-wild on your assets, or you get sued. Foreign holdings are gonna be very hard for your ex or some ambulance chaser to expropriate.

Hook, we are delving into complex territory here. Let me address what I can now.

1. Printing money is actually playing within the rules even it it somehow seems unethical. Of course, if you take it too far (ala present day Zimbabwe or several LatAm nations in the 80s), you will destroy your economy. But if you do it in a controlled fashion within limits, it can be a viable monetary and economic strategy. Fiat currency systems are made this way by design. Controlling the world's reserve currency gives us special power within the current system. Just remember, those countries chose to buy our debt because we offered the best alternative. Other bond markets including Europe's are just not big enough to absorb all that trade capital. Remember, in spite of our relative wealth decline, growing rich-poor gap, and social problems, we still have the advantage as the world's largest economy, military power, and controller of the world's money. Might prevails until someone can beats it.

I don't think any type of monetary system used in history has ever been perfect for avoiding or even controlling economic cycles and crises. The good thing about fiat systems is that they allow central banks to manage money supply and to some extent, mute economic cycles. The bad thing is that they may encourage politicians, who tend to be most concerned about short term performance, to use monetary policy to postpone structural adjustments until they build up to a tipping point (usually long after they are out of office).

2. Regarding the numbers, anyone who wants to get an idea of where we stand should spend some time with a calculator to play around with some of the published figures. Don't just get sucked into the sensationalist Youtube vids. Currently, gross debt is around 15 tn or nearly 100% of GDP, still within the bounds of reason as a certain amount of leverage can be good. A figure closer to 50% would be healthier for most countries. But since we can borrow so cheaply given our reserve currency and the current state of our bond market, this debt only costs us 1.3% per year or just 6% of our annual budget. At those levels, debt-to-GDP of 100-150% is easy to service and maintain.

At the federal level, we spend around 3.5 bn but get just 2 bn in tax receipts, 1.5 bn deficit per year. The last time we were in surplus was late years of Clinton admin when stock market was on fire and capital gains taxes were generating huge amounts of extra tax revenue. Keep in mind that from a historical perspective, aggregate federal tax rates in the US are at record low levels. Higher taxes overall would shrink the annual deficit. If we slashed military spending (20% of total budget), that would help a lot too.

Now the number which you throw-out of 100 bn is something I need to do more research on. It may be separately funded but let me get back to you on it. Currently, Social Security payments account for 20% of total budget and Medicare + Medicaid another 23%. So they are huge numbers. Moreover, demographic trends will push them up a lot over time. This is an area where at some stage, general public might get screwed to some extent. Personally, I've never paid into either system except during high school employment.

Another key issue which should be considered are the debt levels of state and local governments. Since my family is from Illinois, I am all too aware of how politicians can go 'third world' and steal massive amounts from the public. I will try to look more into this too.

3. The US is a dangerous place to hold assets for reasons you mentioned above. The arm of the IRS/Treasury and Department of Justice can sometimes extend beyond borders. But its next to impossible for all other creditors. It behooves US people with significant assets to expatriate them if they are portable enough or research and implement effective trust structures to take over their ownership if they are stuck in the US (real estate, farmland, etc).

The way money is suppose to work is that the government prints the money and then issues it into circulation at NO INTEREST to serve the people, the trick is to put just enough to facilitate this properly without putting in too much or too little, when done right this leads to everything remaining the same in price. What you pay for a house, your children will do the same, making it fair for everyone.

The way the system is now, since 1913, is a scam, setup to not only enslave the population through debt, but to also tie this debt to income tax which is illegal and immoral.

The debt can never be paid off it's a mathematical impossibility, thus the nature of the scam, then by tying all citizens to the debt they become slaves to it, forever having to pay income tax to service the debt, becoming more and more the surfs.

People simply don't understand this because they don't understand evil nor do they understand the agenda, which is to make all people under the direct control of money so that all people can be controlled via the ability to either buy or sell.

The time is almost here now and people have no understanding of what's really going on.

[Hook]

@Rock:
All your 'bn' need to be 'tn'. I wish we only had 14 billion in debt. We could pay that off in a day.

You bring up a good point about the local/state debt, which when combined with the federal debt almost doubles.

In any case, something's going to eventually give, and like you said, it's best to be diversified. Which is a good idea anyway, even in good times.

[Rock]

@Rock:
All your 'bn' need to be 'tn'. I wish we only had 14 billion in debt. We could pay that off in a day.

You bring up a good point about the local/state debt, which when combined with the federal debt almost doubles.

In any case, something's going to eventually give, and like you said, it's best to be diversified. Which is a good idea anyway, even in good times.

Sorry man, that's my bad! I realize its tn. Its late here in Haiti and the mosquitoes and heat are distracting my brain.

As for 'something's gotta give' you'd be surprised at how long things can keep rolling like this. I've seen it happen with insurance companies holding large liabilities of policies with high rate guarantees and even Madoff's hedge funds which lasted decades. The US position is at least better than those two extremes. I may crunch some numbers and get back to you on all this.

[Rock]

The way money is suppose to work is that the government prints the money and then issues it into circulation at NO INTEREST to serve the people, the trick is to put just enough to facilitate this properly without putting in too much or too little, when done right this leads to everything remaining the same in price. What you pay for a house, your children will do the same, making it fair for everyone.

The way the system is now, since 1913, is a scam, setup to not only enslave the population through debt, but to also tie this debt to income tax which is illegal and immoral.

The debt can never be paid off it's a mathematical impossibility, thus the nature of the scam, then by tying all citizens to the debt they become slaves to it, forever having to pay income tax to service the debt, becoming more and more the surfs.

People simply don't understand this because they don't understand evil nor do they understand the agenda, which is to make all people under the direct control of money so that all people can be controlled via the ability to either buy or sell.

The time is almost here now and people have no understanding of what's really going on.

Hey Mr. Oiltrader and welcome to the forum.

It sounds like you've bought into a lot of hype without critically examining any of the underlying assumptions. Who told you that is how 'money is supposed to work'? Read a book or two on money and monetary policy which discusses systems used all over the world for the last few hundred years including many which were totally backed by precious metals and therefore were inflation free. Then tell me which of them never caused or facilitated serious economic problems.

As for not charging any interest, we are already there in real terms. Just take a look at the short end of the sovereign bond market. Japan has actually had negative real interest rates (effectively paying people to borrow money) for much of the last decade.

The debt could never be paid-off? Are you sure? What figures are you basing that on? If a certain percentage of all government and private assets were sold-off, the debt could easily be paid off. 100 tn is around 333K per person in the US. Most of that is owed to American citizens and institutions. Now the population density of the entire US including Alaska is 84 per sq. mile which implies we have 7.6 acres of land and all accompanying infrastructure and natural resources for each person - much higher in value than 333K per person. If you were to take governments share of all that, it wold still be worth much more than 333K per person.