For one thing the documentary fails to discuss who the US government is in debt to. The vast majority of its debt is held by American people and concerns in the form of bonds.
When the government issues more debt, those bonds are purchased by investors like you and me as part of our investment portfolio. We get a coupon rate (interest rate) and hence a return.
The first National bank was formed because the several states were debt ridden from the revolution, and it was agreed that the National Bank would be formed in part to assume all the state's debts, and create a line of credit for the country. Jefferson may have hated the bank, but that didn't stop him from utilizing it so as to purchase the Louisiana Territory from France when it became available.
As for inflation being a tool the Fed uses to take our money. Since the 2008 financial collapse, interest rates have plummeted which many fiscal conservatives warned would result in massive inflation. The inflation never came. We've been between 0.5% and 3% inflation year over year since then.
And another thing. Even if you don't have a National Bank, that doesn't stop a bank from being involved in your mortgage and you losing your home if your job "sucks" and "I'll have more money next month!"
Additionally, all those credit cards and cheap cash are *our* fault. We as consumers have to take personal responsibility for what we spend our earnings on, as well as what we allow ourselves to become leveraged over.
I've gone into debt for two things. My first computer when I was in college, and my graduate degree. I've never personally had credit card debt.
The banks can't make you leverage yourself (take out debt). Home prices are so high in part because home ownership is falling, so those who still own land can raise their required price.
But to me the real problem is that wages have been stagnant for 30 years, while cost of living has increased (Not inflation, that's always with us). With wages staying stagnant people have been trying to keep up with their demanded standard of living by other means (debt). Debt is bondage.
Had wages tracked even inflation, you wouldn't see half so many of the poverty related problems we are seeing today. If you want to fix wages, then American workers need to demand those fixes, probably by unionizing again.
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