US Monetary System

The United States of America 

A different system & structure to 194 countries which share some similarities & yet differences

MONETARY SUPPLY CONTROLS

A trillions example

An increase in the monetary supply by $40 trillion would be an astronomical and unprecedented monetary policy action, dwarfing the significant expansion during the 2020 COVID-19 crisis, and would likely cause extreme inflation by rapidly increasing the amount of money available to purchase existing goods and services. This action would drastically devalue the currency, raise prices across the board, and could lead to hyperinflation and economic instability, as the rapid increase in money supply outpaces the production of goods and services. 

Magnitude of the Increase

• Unprecedented Scale:
An increase of $40 trillion in the monetary supply would be a multi-trillion-dollar expansion, far exceeding typical fluctuations and even the massive growth seen during the 2020 pandemic. 

• Context:
For comparison, the US M2 money supply is currently around $22 trillion. A $40 trillion increase would more than double the existing money supply. 

Likely Consequences

• Extreme Inflation:
The fundamental economic consequence of such a rapid increase in the money supply is a significant devaluation of the currency, leading to a sharp rise in general price levels. 

• Reduced Purchasing Power:
Each unit of currency would buy substantially less, significantly eroding the purchasing power of consumers and businesses. 

• Hyperinflation Risk:
Without a corresponding increase in the quantity of goods and services available, the economy could rapidly spiral into hyperinflation, a situation where price increases become uncontrollable. 

• Economic Destabilization:
The uncertainty, potential collapse of the financial system, and loss of savings would destabilize the economy significantly. 

How the Increase Could Be Implemented (Theoretically)

• Central Bank Intervention:
A central bank, like the Federal Reserve, could inject this much liquidity by purchasing trillions of dollars in assets (such as government bonds or other securities) from financial institutions. 

• Government Spending:
The government could also increase the money supply by spending large amounts of money that are not backed by taxation, which would be a form of fiscal policy that indirectly increases the money supply. 


US DEBT CEILING REPAYMENT

The US debt ceiling does not get "paid back" because it isn't a loan; it's a limit on the total amount the U.S. government is authorized to borrow. To "pay back" the national debt (which the raised debt ceiling allows for), the government uses future tax revenues and the sale of new bonds to pay for existing obligations and interest payments. 

Understanding the Debt Ceiling

• A Limit, Not a Bill:
The debt ceiling is a statutory limit Congress sets on the total amount of money the U.S. Treasury can borrow to meet its existing legal obligations, such as Social Security payments, Medicare, and military salaries. 

• Authorization to Borrow:
When the debt ceiling is reached, it means the government has hit its maximum authorized borrowing level. Congress must then vote to raise or suspend the debt ceiling to allow the government to continue borrowing to pay its bills. 

How the Debt is Paid 

• Tax Revenue:
The primary way the U.S. government pays its bills and eventually repays its debt is through tax revenues collected from individuals and corporations.

• Selling New Debt:
When revenues aren't enough to cover expenses, the Treasury Department sells new Treasury bonds to investors, both domestically and internationally.

• Refinancing:
Much of the debt is "refinanced," meaning the money from new debt is used to pay off older debt that is maturing.

What Happens When the Ceiling is Reached?

• "Extraordinary Measures":
If Congress fails to act, the Treasury Department may use "extraordinary measures," such as delaying certain payments or temporarily withholding contributions to government retirement funds, to continue paying the government's bills. 

• Constitutional Crisis:
The most serious consequence of failing to raise the debt ceiling would be a default on U.S. debt, which could trigger a severe economic crisis. 



WE CANNOT END THE DEBT CEILING

It as a checks & balance structure ensures tiered debt controls

To erase the U.S. debt ceiling entirely, Congress must pass legislation to repeal or amend the Second Liberty Bond Act of 1917, which established the debt limit. Lawmakers can also temporarily suspend the debt limit, allowing the Treasury to borrow without an upper bound for a set period. Eliminating the debt ceiling is a complex policy change with significant political and economic implications, requiring a new law to remove the limit. 

How to change or eliminate the debt ceiling

• Amend or Repeal the Debt Limit Law: The current U.S. debt limit is set by the Second Liberty Bond Act of 1917. Congress can vote to repeal this law or amend it to permanently eliminate the debt ceiling.

• Pass Legislation to Eliminate the Debt Ceiling: A legislative act is necessary to change the current debt limit law.

• Use the Reconciliation Process: Under the reconciliation process, Congress can pass legislation to increase the debt limit with a simple majority vote in the Senate, rather than requiring bipartisan support.

Why eliminating the debt ceiling is difficult 

• Political Leverage:
In recent decades, the debt ceiling has been used by political parties to negotiate on fiscal policy, creating a difficult political environment for its removal.

• Partisan Divide:
The debt limit has become a contentious issue, leading to months of political disagreement, as seen in the debt ceiling crises since 2009.

Alternatives to elimination

• Suspend the Debt Ceiling:
Congress can pass legislation to temporarily suspend the debt limit, allowing the Treasury to borrow freely without a set cap for a specific period, as seen in past resolutions. 

• Raise the Debt Ceiling:
Instead of eliminating the limit, Congress can vote to raise it by a specific amount. 

THE UNIVERSAL BASIC INCOME PROGRAM 

An S.B.G & CIG experiment 

Using a break - container system the debt can be repaired using the current with an altered partial profit share investment effort connecting to externals for faster repayment & thus allowing for a better structure 

Tarrifs are good for an international market connected to public & private markets in quarterly performance yet are not the best route to rely on to repay internal debt 

Especially not $35-40 Trillion in debt 

Reference 

https://2026sydpersonal.blogspot.com/2025/08/sbg-cig-universal-basic-income.html

There is still more debt per Canadian in Cnaada than in USA as of August 2025 yet a lower amount due to only 50 Million citizens versus 350 Million 

After all present taxes are done Canadians pay slightly less than Americans yet Corporate & property taxes can be similar or less on US Soil 

S.B.G & CIG