The National Debt

s the national debt really the most "Crushing" Debt? Did you ever know of:

• A farmer who lost a farm
• A neighbor who lost their home
• A merchant that lost a store

because of the current National Debt? $7 Trillion (est.)

$30 Trillion!*

Paying off the National Debt only:
• Reduces the money supply, or
• Creates greater Private Debt

'HOW COULD THIS BE?

Russell L. Munk, Assistant General Counsel, U.S. Treasury explains it well. He wrote, "New money is created by offering loans to customers. A private commercial bank...can make roughly six dollars in loans for every one dollar in reserve...It simply makes book entries for its loan customers saying, "you have a deposit of six dollars with us." Since the bank owns the new money while the customer has merely borrowed the money the bank does indeed get the benefit of the new money...money for paying interest on borrowed money comes from the same source as other money comes from..."

" MONEY THAT ONE BORROWER USES TO PAY INTEREST ON A LOAN HAS BEEN CREATED SOMEWHERE ELSE IN THE ECONOMY BY ANOTHER LOAN."
- John M. Yetter Attorney-Advisor Dept. of the U. S. Treasury