Posts Tagged ‘United States’

“If you add up all of our government, corporate, and consumer debt, America owes roughly $70 trillion…. that adds up to about $836,000 per American household…

The United States has become the largest debtor in human history.  The obvious question is: Why on Earth did so many people borrow so much money they have no hope of ever repaying?” 

-Porter Stansberry

 

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“In the United States neither paper currency nor deposits have value as commodities.  Intrinsically, a dollar bill is just a piece of paper….  What, then, makes these instruments…acceptable at face value in payment of all debts and for other monetary uses?  Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and for real goods and services whenever they choose to do so.  Money, like anything else, derives its value from its scarcity in relation to its usefulness….  Money’s usefulness is its unique ability to command other goods and services and to permit a holder to be constantly ready to do so.” -Federal Reserve Bank of Chicago