Persuaded, as the Secretary is, that the proper funding of the present debt will render it a national blessing; yet he is so far from acceding to the position, in the latitude in which it is sometimes laid down, that ‘public debts are public benefits,’ a position inviting to prodigality, and liable to dangerous abuse, that he ardently… wishes to see it incorporated, as a fundamental maxim in the system of public credit of the United States, that the creation of debt should always be accompanied with the means of extinguishment.
This he regards as the true secret for rendering public credit immortal. And he presumes that it is difficult to conceive a situation in which there may not be an adherence to the maxim.
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3rd world nation status
1.bankruptcy
2.politicians will be introduced to Saddams gallows
3. The “New” Untied States of America will be formed
Oh, wait, sorry, 1. and 3. have already been sneaked by us
The people will be screwed, either through debasement of the currency or runaway inflation. The will not be any spending cuts of any significance to alter the destructive path we are on.
Either we Invent something that we can sell for$16,000,000,000,000 or QUIT spending Money we don’t have and try to pay back what we owe or end up being completely owned by other Countries!
Start learning to speak Chinese…
Our children, grandchildren and perhaps great grandchildren are already saddled with this debt. We should do our best to change that now without any ado.
Go back to the gold standard (make it plutonium for all I care), settle the debts and don’t incur more for any reason whatsoever.
“Do you hear that, Mr Anderson? That is the sound of inevitability”.
The two sentences following the quoted section:
“This he regards as the true secret for rendering public credit immortal. And he presumes that it is difficult to conceive a situation in which there may not be an adherence to the maxim.” – Alexander Hamilton, “First Report on the Public Credit,” Treasury Department, January 9, 1790, communicated to the House of Representatives on January 14, 1790; Works: Vol. 2
Most of the other Founders profoundly disagreed with Hamilton regarding Public Debt — and in particular the formation of a central bank, which he thought a good mechanism to create legal tender and fund government debt. But even Hamilton stated that this debt should (and would) only be incurred when there was a definite plan of how to “extinguish it.” Obviously, he didn’t anticipate the descent to which our corrupt politicians would go just 2 centuries later.
In answer to the questions — NO, a $16 trillion debt growing by 10′s of billions a day cannot be “extinguished,” our Federal Government has no plan — and no intention — to do so. Most in Washington, DC are just riding the wave of easy revenue as LONG as they can, and when it ends — they will do their best to “disappear” so the people don’t hunt them down and skin them.
What will ultimately happen is that the debt will continue to grow, and the FED will continue to monetize our debt, and print more in more money, until there is an economic collapse. It may be caused due to hyperinflationary pressure pushing the value of the dollar down to nearly nothing; It could be that foreign lenders STOP lending to us; it could be that a foreign economic collapse (Europe) goes global and takes us down too; it could be due to a crisis from a major terrorist attack, or due to another war beginning, or political unrest here at home…. Whatever the case — NO, it won’t last. YES, it will end, probably sooner rather than later, likely in a very harsh and destabilizing way unlike Americans alive today have ever seen.
The interest alone will be enough to destroy us. We may be counting the days at this point.
God help us.
No
Have you seen the Congressional Budget Office’s debt projections? It’s terrifying. Long story short they predict our debt will be 200% of GDP by 2035. Americans would panicking if not for our apathy.
He had it right then, and it is still right today. Lets stop the spending and start to pay down the debt. need to retire 10% each year till it is paid off.
Don’t you love their use of the English language? Not to mention the substance there.
Greece during the early spring will resemble a backyard barbecue in comparison. Or, we could all agree to suck it up on Ramen noodles and balogna for 2 years, without spending on credit, and with canceling our smart phones. 2 years, but good luck getting *that* level of agreement. :-/
Id love for these question to be often quoted in the halls of congress & senate. Where’s the statesmen?
Any man who does not know who Locke, Bacon or Newton is is not worth our time!
The collapse of our nation’s monetary system and of our nation’s sovereignty and the establishment and the capitulation to a one world order and currency.
Hamilton very literally saved our early economy from ruin. He does not receive enoughh credit.
Cut federal bureaucracy in half now!Don’t need it.
Yes, I think Hamilton would have been against tax relief for the wealthy.
Rather a pity that Hamilton developed his system of government financing without assuring the constitution had strong protections to assure debts were “extinguished”.
I’ve felt debt should only be allowed with the addition of a debt paydown surcharge added to everyones tax bill (not just the wealthy…) so everyone becomes aware of the cost – no one would be exempt from paying something on it. Every round of borrowing would incur an additional tax line on your return.
Tax relief for the wealthy, huh? People should not fall for those divide and conquer strategies. Hamilton would not have been foolish enough to do so.