IT’S NOT TRUE THAT THE U.S. HAS NEVER DEFAULTED

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The Shadow
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Joined: 01/17/2008

In the current Congressional Debate on their debt, Politicians constantly say, the US has never defaulted. That’s just another government lie. The US has defaulted at least six times, and many times more since 1971.
1. Default of 1779. To finance the Revolutionary war, the Continental Congress printed inflationary dollars, paying their creditors only 2.6 cents on the dollar. Hence the old saying “not worth a continental”.
2. Default of 1790. The Continental Congress borrowed $11 Million. The government refused to repay any of this debt.
3. The Greenback Default of 1862. In 1861 Congress created a new currency called the greenback, $60 million worth, redeemable at any time for 4.8 ounces of gold per dollar. But in 1862 the US treasury refused to redeem in gold and issued non-redeemable notes at a 40% discount from original value.
4. The Liberty Bond Default of 1934. To finance WWar I our government sold Liberty Bonds in 1917 @ 4.25% interest payable in gold at $20.67 per ounce. By 1933 our lying government had issued $29 Billion of these bonds but had only $4.2 billion in gold. So Pres. Roosevelt confiscated every citizens’ gold making it a crime to own gold and devalued the bonds 40%. I remember my father and grandfather talking about losing their money on this default.
5. The Default of 1971. After WWar II the US printed dollars backed by gold again @$35 per ounce. But Pres. Lyndon Johnson printed so much money to finance the Vietnam War and his “Great Society Social Program that Pres. Nixon had to default on the gold redemption. Congress then went wildly insane, printing money backed only by the “Full Faith & Credit of our Lying Government.” As a result today your dollar is worth only one sixteen hundreds of its 1971 value. That is less than 1cent of an ounce of gold in purchasing power.
6. Default #6 is ongoing today. Every time the Fed prints more money, the value of the dollar goes down in relation to how much you pay for goods and services. It’s called inflation and devaluation of the dollar – a crime of treason against the American people.
So the next time one of your government representatives says the US has never defaulted on its debts, tell them either they are grossly ignorant of monetary history or they’re a damn liar.

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