What about the future?
How long can this go on? Other than the central banks in existence today which are failing (read anywhere about the current world economic crisis), all central banks that have created money from nothing in the past have eventually failed (See our History of Money and Banking) or looted their population and weakened their countries (England as an example). As long as all debts are paid, the system holds up, but money that is monetized, debases the currency. If something happens to cause a massive default (like the government encouraging home ownership for those who can't afford to pay for a home), the system receives a shock from the default and the economy falters. Eventually, inflation devalues the currency and the citizens are robbed.
In 2010, we borrowed about $0.40 of every dollar we spent and budgets in the future are not closing that gap. When other countries will no longer accept our dollars because of their diminished value, we will bankrupt because we will no longer be able to pay our obligations.
We still have a great country with raw materials, labor, technological know-how, businesses and infrastructure, but we are being strangled by debt. The only thing we need for a sound future is a sound monetary system.