China may be as heavily in debt as we are. It just has a different way of keeping its books…

Read more here –

4 Responses

  1. Good article, Ellen.

  2. Thank you for looking into what China is doing. There is such a high degree of miss information about China’s economics, its frustrating.

    I don’t think anybody can blame China for not playing the game just like the IMF tells them to. It’s such a rigged and flawed game, good for them for playing it their way.

  3. Ms. Brown, I was apparently “lost” from the seeking alpha website carrying your article. Here is the letter I posted to you about a proposed fiat-LET monetary system i could favor…

    The Federal Reserve “system” is dying in it’s own fiat shredded waste. A new monetary system should come forward to replace it and rescue America from the clutches of those who would cause any considerable national debt at all, let alone one that is unpayable even unto generations untold. In my letter:

    To Ms. Ellen Brown,

    After the government wrests money making and OWNERSHIP from the Fed, as it’s dominance in world monetary matters wanes , as Ron Paul will hopefully now try if he is not blocked again from the House monetary policy panel; should we NOT return to the gold standard as he would do, but instead to a fiat system based on a GNP basket, with Federal AND states’ controls, especially with no deficit powers except in times of “clear and present danger”, not ongoing “wars” on terror, etc., perhaps even with state nullification powers to an extent to keep appraisals fair, as in a LET system ? My fiat-LET system would go one step beyond the classic description, issueing “money” for assessed goods based on readily available information. The making and ownership of money is second in importance only to “providing for the common defense”, and so my seeming problematic involvement of the Federal and State governments is paramount IMO.

    The mistake that all fiat systems to date have made, eg. Franklin’s Continental, Lincoln’s greenback, IMO is that there is no basis that actually defines the money to give it worth and define the level of money supply (m-1 at least), ie. the GNP. “Money” should be a “worthless”, easy to produce, but hard to counterfeit vehicle of worth, and so declared legal tender for all debts… by the government, not as the relic gold, with the perceived worth IN the money itself as it’s proponents like the Mises group and Ron Paul would have it, lest the hyper-valuation necessary would place it out of bounds to any other use as perhaps $100k/oz.? (even with great fractionalization, another danger ). Of course, there would be no national debt incurred as with the Fed/English system now in place. The money would just be spent into circulation by the Federal and state governments (with bank of ND noted), and be taxed normally on use for commercial and private ends, completing the “money loop”. the amount of money in circulation would mirror the GNP, and so minimize inflation or deflation.

    BTW, after nullifying the Fed act of 1913, and it’s 1/2 of our national debt, should we also forbid foreign investment to any great extent, institute taxes on foreign “off-shore” investment such that rebuilding our infrastructure will be assured (also with incentives), requiring banks to lend to valid business interests instead of hoarding money as now? The banks seem to be keeping the economy in a spartan limbo to keep inflation down by limiting the money supply to prevent a repeat of the Weimar Republic type. this allows them to have the “military service sector”, which is all there is left of the middle class, in a low state of economics with low inflation,, while boosting their world banking power, at least to the extent that nobody “objects” to their unfettered overprinting of fiat, inflating away, not only all the savings of prior American generations, but that of the world investors in the American monetary nightmare, backed up by the enormous military presence, so far unchallenged. Eventually, this inflation will come home to roost, making our goods cheaper again on the world stage for perhaps the next generation of Americans, but unfortunately too late for present retirees.

  4. Someone posted this question in response to the NPR
    report on the two Fed bankers sitting in a room and
    buying $1.2 trillion dollars of toxic assets using
    money created “out of thin air”:

    > I just listened to this report and I wonder, if the central
    > bank can create money out of thin air, does it ever
    > un-create money? If the new 1.2 trillion dollars does end
    > up being a problem is there a way to un-create all those
    > dollars?

    Sure, all the Fed has to do is to write-off the debt,
    forgive the debt, just like the Chinese banks did.

    How do we get the Fed to do that? Stop paying
    back the debt and interest on it.

    The debt becomes a non-performing asset and
    can be treated as a special purpose vehicle
    and written off. It was created out of thin air and can
    be sent back into thin air. The Fed really loses
    nothing but a fraudulent cash cow.

    If we do that, how do we create new money to get the
    economy growing?

    We, through our government, create it and issue it
    through the Treasury of the United States to the banks.

    There needs to be feedback loops to limit how much is
    put back into the economy when inflation exceeds,
    say, 9%. “The Treasury shall not issue additional money to the banks as long as inflation in the previous
    two quarters exceeds 9%, regardless of how much
    Congress has authorized.”

    There also needs be a provision for feedback to get
    Congress to authorize more spending on infrastructure,
    education, health, unemployment compensation, etc.
    in times of deflation.

    “The President shall notify the Congress of the need for
    increased spending when the deflation rate in the past
    two quarters has exceeded 9%. The President shall
    report to the Nation that there is a state of deflation in
    effect and that the public should contact their Congressional representatives to authorize more
    funds for needed public projects.”

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