1530s, from the Italian. Banca Rotta "A broken bench".
Banca "Moneylender's Shop" "Bank".
Fact 1. It should be fair to say that if many States are unable to meet their obligations, make cuts in spending, or borrow more money they are insolvent or bankrupted. Also should be included to their ailments a shortfall in pension funds. This is not a myth for if the Treasury had not provided them with billions of dollars and continued to do so they would have already declared insolvency.
Fact 2. The Treasury is bankrupted and quickly approaching a yearly deficit of $2 trillion. This is not a myth either for had not the Federal Reserve provided them with an unknown and undisclosed amount by buying Treasury Bills it would have already declared itself insolvent. Adding to this insolvency are the bankrupted Treasury obligations of trillions of dollars owed to Social Security and Medicare. The Congress is ready to dump another $26 billion to the States so that they can start school for the 2011 year. Failure of the states ability to finance education would put final the nail on the coffin. The required need in cuts in order to remain solvent for both Federal and States would bring about social unrest, something they will try to circumvent until unavoidable.
Fact 3. The Federal Reserve which are the private bankers that finance our Treasury debt cannot become insolvent in the sense that it cannot run out of money. It has an indefinite ability to print dollars or transfer dollar funds as it needs or desire to bailout private banks or the U.S. Treasury. What the Federal Reserve can and will do is create enough dollars until they are worth nothing. This is not a myth, it has been done before throughout history and fiat currencies have lost its value for that same reason and in some cases all of its value.
Fact 4. That the world has enough money or the will to finance the deficit of the United States is also a myth. The world is still supporting the dollar because of its dependency on it as the world's currency but at the same time, it is preparing for its demise. Many countries are dollar trapped and will suffer the same fate as ours.
Fact 5. Most of the citizens in our country will ignore to acknowledge this. I t is obvious that our political leaders are just hoping and buying time trying to squeeze another day in a "Paradise" that has already ended. Of course, it is not this bad for most will blind themselves to this. The status of our nation and economy has become evident for the 20% unemployed or underemployed and for the 40 plus million that are receiving Food Stamps. Since both of these rosters continue to increase, one could only wonder who will be next to join them.
Fact 6. This cannot continue forever, whether it is tomorrow or three years from now, it will come to an abrupt and undesirable end. We can only guess what the new beginning will be but it would be naive to assume that a bankrupted government can take care of everyone and that at one point we will not have to fend for ourselves. In today's world, money isn't just a coin or piece of paper it is life. Without it, we are unable to provide ourselves with food and shelter. In order survive without a handout or in its absence one must beforehand plan or procure other means.
We could sit around waiting for a miracle to happen or pretend that all of this is just a nightmare and everything will be fine once we wake up. Unfortunately, one is just a wish and the other a delusion.
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