The debt is not a problem for the U.S.

The United States of America has issued trillions of dollars in bills, coin and bonds because its national currency, the dollar, is the international currency of interchange. Those instruments (bills, coins and bonds) are simple debt. This is something normal because of the size of the international transactions. However, there are critics that condemn this policy and assure that the debt is something negative for the United States and the rest of the world. The individual people and private institutions that assure this do not say the truth. The most of them have particular interests on the theme. They want to diminish the dollar strength as international mean of interchange to favour other currencies like the Euro and/or the Chinese currency.

The emission of money, in cash or in bonds by the United States, is for the United States internal debt and not foreign debt. It is completely different the effects of the internal debt from the foreign debt. The last constitute a factor of weakness for the economy of the countries because the foreign debt must be paid with international means of payment, it mean, with dollars of the United States of America, and not ever the countries have the sufficient amount of dollars. But for the United States of America the situation is different, because the US can issue the amount of dollars that requires its internal economy and the international economy.

1. Value and support of the national currencies

Since the Agreements of Breton Woods, in the post war, the value and support of the national currencies of the different countries of the world was established in base to the dollar of the United States of America. In those years, in Breton Woods, the countries agreed: a) the creation of the International Monetary Fund, b) that the international reserves of the nations must be kept in dollars c) That the dollar would be the international currency of interchange, and d) that the emission of national currencies should maintain a relation with their reserves in dollars. For example, if you set that your national currency is worth in two (2) units per dollar, this mean that each national currency in circulation should be supported by a reserve of 0.50 dollars, but not ever the nations carry out this rule. In all the cases, the set of the parity regarding the dollar is an act of sovereignty of each government; this means that they can issue more or less amount of national currencies.

I don’t believe in public fiscal deficit; the governments have sovereign capacity to issue national money; which is the support? The people faith, nothing more; none currency has an own value, per se. The currencies of all the countries are simple papers without intrinsic value that are accepted by the people to make transactions in the market and the governments have the power to issue those papers. In the past, the currencies had an intrinsic value, because they were made of gold or silver. But with the apparition of the bills of paper the situation changed. At the beginning the bills had a support in gold but along the time this support was eliminated and now its support is only its credibility, its acceptance.

The currencies cannot be supported in gold for a simple reason: all the gold that exists in the world is not enough to support the big amount of money that circulates in the world.

The debt of the United States instead of to be a factor of weakness of its economy and the world economy, is a factor that reveals the strength of the US economy. The financial crises are caused by the owners of private fortunes to obtain personal benefits. They do the crisis and the governments pay the bailouts. That is the true truth.

Banks in bankruptcy but rich bankers, Theory of the Coercive Deficit

The people that know the politics are aware that there are some activities that any government and any congress can not deny to support.
The bankers, for example, know that any government can let the savers lose their money because if this happen all the financial system is in danger. When a bank fails, usually the small clients recover their money through the governments insurance.
The bankers know that they can do anything with the client’s money because in the countries majority the governments do not have capacity for controlling their activities. They are aware too of the most important issue: that the governments will restore the money to the savers. They know that the governments and congress do not have other option but to pay to the savers because if they do not pay there is a serious risk of social disorders and economic chaos. This is known as the Theory of the Coercive Deficit.
For that reason the bankers use the savers money as they want. When a financial crisis occurs, generally you find banks in bankruptcy but rich bankers. Who fail is the bank no the bankers. Usually the bankers have their money secure in other kind of investments. The problem is for the savers that have to wait that the government restore their money.
In some countries this kind of conduct is legally punished but usually these persons ---that have enough money for living in other countries--- escape to other nations or financial paradises. In other countries ---instead of punishing these actions--- the governments give more money to the bankers.
The financial activity is something essential for any economy. But it is necessary to guarantee the money of the savers. And this implies more official control on the banks, especially over their investments.
Gift money to rich bankers is a sin. As too is a sin to deny help to the poor that struggle for keeping their homes.