hard working American

there is huge evidence that our country is so far in debt to the rest of the world that we will never be able to EVER pay it off. to make matters far worse, our stupid government has passed a bill which DEMANDS full disclosure of currency exchanges that take place here. the other countries will finish their decreasing non-use of the US dollar and our curreny will become worthless is less than a week

deb_bus Loc: fort worth and wichita falls tx, and houston

Oh, I believe it. Doesn't surprise me a bit. America's dollar has been in decline for some time now. It's worthless. My understanding is that we have no gold to back up the money that is printed today or any day. I blame the government for this. Not just oscandal, but several presidents back. Just like social security. I understand that there will be no more social security payments by 2015. The government, as far back as Reagan, has squandered the money in the social security pool, in the amount of 13 trillion dollars. What all they have spent it on is yet to be known. It's being called a ponzi scheme throughout the years, though. All I know is that oscandal is going to have big problems happen, if he allows social security to be stopped. He'll get the blame for it. So be it. I don't like him anyway.

Kevyn

You guys need to put your money where your mouth is. Cash in everything and buy gold from those late night radio hucksters, also arm yourselves to the teeth and buy all of the ammo you can afford befor the government gets it. Then go for canned food and don't forget lots of booze to calm your frazzled nerves. There is plenty of cheep land available in west Texas and out of work contractors to build bunkers. Hop on a lawn chair, pour yourself three fingers of bourbon and scan the horizon with your field glasses for those black helicopters. When they arrive, and you can bet your first born they will, you will be ready while the rest of us loath the day we laughed off your dire warnings.

petertimber

ODE TO THE WELFARE STATE (last paragraph);11/4/1949

My faith in you is shrinking,son
you nosy little brat;
you do to much thinking,son,
to be a Democrat

MarvinSussman

Q1: For taxpayers, is our “national debt” really a burden that must be repaid?
A1: No. For taxpayers, it is not a real debt. It’s a “Debt In Name Only”, a “DINO”-*

THE DINO IS NOT NOW AND NEVER WILL BE A BURDEN FOR TAXPAYERS. It is rather the buyers of newly-issued bonds who, in a virtual rollover, pay for redemption of mature bonds. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed, with cost-free keystrokes, could increase the demand for bonds by buying a large slice of the DINO in the open market.

THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID. Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. To supply enough of the ONLY risk-free securities used for trade collateral, insurance, pensions, bank reserves, etc., the DINO MUST GROW with the economy! Our world needs the DINO!

Every federal dollar spent and not retrieved by the IRS is saved by the private sector. Yes, Deficits = Savings! The Treasury has a “National debt” and the private sector has a “National asset”. The bad “Debt Clock” is also the good “Asset Clock”. Since, with our trade deficit, we export money, deficit spending is our economy’s SOLE source of savings! In fact, if large budget deficits don’t replace our vanishing cash, deflation will freeze our economy solid. Who would spend a dollar today if it would buy more tomorrow?

Our economy is suffering from acute anemia. Our (DINO + total bank deposits) / GDP ratio is less than half of China’s figure. Our M2 (money supply) / GDP ratio is half of Switzerland’s ratio and one fourth of Hong Kong’s ratio. To become and stay prosperous, we need to DOUBLE the DINO / GDP ratio to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation.

Inequality worsens the anemia. Most of the paltry money supply circulates among the Rich who corrupt Congress for estate laws to stay rich to buy Congress for laws that enrich the Rich to buy Congress…..etc. Wealth is power and inherited wealth is inherited power: aristocracy, always the enemy of meritocracy!

Q2: Won’t the annual debt interest expense explode the budget?
A2: Bond-holders’ taxes return about 20% of their interest income. New bond issues finance the rest. As no physical resources are consumed and the money supply does not change, there is NO INFLATIONARY EFFECT. About 80% of the interest is added to the DINO, which needs it. For those reasons, CBO budget economists deal only with the “primary” budget, which excludes the annual debt interest expense.

Q3: Could savers make a “run” on US Treasury bonds?
A3: Yes, when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

Q4. Could savers stop buying US Treasury bonds?
A4. Yes, indeed! SAVERS WILL ALWAYS WANT THE SAFEST BONDS for trade collateral, insurance, pensions, bank reserves, etc. Now, almost two thirds of the world’s reserve currencies are in US dollars and almost half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its bonds could become safer than ours and we could then lose our bond-buyers. And that could happen if US voters let their DINO concerns stop the renewal of falling bridges, failing schools, creaking railroads, leaking sewers, etc. Money can be printed, but infrastructure has to be built with real resources and time, which have no substitutes.

Q5: Won’t we need higher income tax rates to pay for infrastructure?
A5: Congress NEVER asks the Treasury if can pass a spending bill. In effect, Congress writes a check that Treasury NEVER bounces. To finance a deficit, the Treasury auctions new bonds created out of thin air with keystrokes.

The only rational reason to restrict deficit spending is the onset of harmful inflation. Until then, Congress can finance both the DINO’s annual interest payment and our much-needed infrastructure. Every day, you fill your sink with water AND you prevent it from overflowing. Why can’t Congress fill our economy with money by building infrastructure AND prevent harmful inflation? China builds 24/7 without harmful inflation. Why can’t we do that?

While a bank holding too many bad loans can certainly hold too many maturing CDs, our non-lending Treasury cannot hold too many maturing bonds unless its deficit spending causes harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, regulate the banks before stopping work on infrastructure projects!

Q6: How much should Congress tax and spend?
A6: Ideally, Congress should tax just enough to prevent harmful inflation and should spend almost enough to cause full employment (and therefore harmful inflation). Result: prosperity with low inflation.

Instead, bribed by Wall Street, Congress taxes as little as possible, enriching the rich, and spends as little as possible, impoverishing the rest of us by restricting deficits / savings. Just as quacks killed George Washington by bleeding his “bad blood”, Congress is destroying our younger generations by reducing (possibly to zero!) our annual budget deficits / private sector savings increase / consumer demand. And, by bribing Congress to pass austerity budgets, the Wall Street charlatans are deliberately nursing a huge army of unemployed labor to suppress the wages and working conditions of the shrinking middle class.

Q7: How should one vote?
A7: Vote only for someone who NEVER EVER worries about the DINO and who ALWAYS worries about people looking for work and drawing benefits instead of building infrastructure for their grandchildren.

Q8: “I have to balance my budget. Why doesn’t Congress balance its budget?”
A8: If you could legally print money in your attic, why would you balance your budget? Congress only needs to balance full employment against harmful inflation. Why is something so simple so hard to see?

The “debt crisis” is simply a hoax crafted by Wall Street to gain a fortune in commissions through privatization of Social Security and other government programs. Don’t be a sucker for the scam!
.
To stay ahead of China, please help me convince voters that deficit spending on infrastructure is limited ONLY by harmful inflation. Please copy and distribute this message where possible.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
*The Q & A dialogue above is based on works by: (books cost about $10)

Frank N. Newman, former Deputy Secretary of the US Treasury, recipient of the Treasury’s annual “Alexander Hamilton” award, author of “Freedom from National Debt” (Two Harbors Press);

Francis X. Cavanaugh, US Treasury economist for over 30 years, author of: “The Truth about the National Debt”: Five Myths and One Reality” (Harvard Business School Press);

Warren Mosler, economist, author of “Seven Deadly Frauds of Economic Policy” (Oxford U. Press);

Dr. Stephanie Kelton, Chair of the UMKC Economics Department, at NewEconomicPerspectives.org.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
© 2014 Marvin Sussman All Rights Reserved. Permission granted only to copy entirely.

SchoonerPete

More of that Keynesian B.S.

grace scott

I'm heading for a cave in the hills.

SchoonerPete

You'll make a good victim. :mrgreen: :mrgreen: :mrgreen:

Kevyn

Not me Schooner Pete, I am up to my ears in weapons, my larder is stocked with canned food and strong drink and I have a cash of gold in three states and Canada! When they come for me and my stash they will get a taste of napalm, courtesy of a well oiled flamethrower! I am well prepared and waiting with bated breath!

PoppaGringo Loc: Muslim City, Mexifornia, B.R.

"Bated breath" will not help when you discover how you have been "baited".

Kevyn

Actualy if you look into it both spellings are recognized as correct in this case, I misspell a lot but not this time.

UncleJesse Loc: Hazzard Co, GA

A weak dollar is exactly what our economy needs. A benefit of a capitalist economy is a self-regulating feature that if we are lucky enough to have a weak dollar, then it means exports increase.

http://www.bloomberg.com/news/2013-01-25/weak-real-dollar-bolsters-u-s-export-surge-chart-of-the-day.html

Retired669

I'll probably be in my boat getting one last fishing trip in before our country ends as we know it. The last place the government will look for us anti government types is out in the open. Once they spot me away from my hidden bunker they will assume I'm on their side and leave me alone! I don't know about your bunker but ours is hid pretty darn good plus we supersized ours. The wife and I have probably 5 years of supplies stored away plus millions of rounds of ammo. We keep our thousands of pounds of gold down on the lower level of our bunker right next to the dogs food bowl. :lol: :lol: :lol: :lol:

PoppaGringo Loc: Muslim City, Mexifornia, B.R.

I am well aware you didn't misspell. However, you misinterpreted the meaning of my reply. I meant that you. or whomever, had been "baited" by the current regime, and had swallowed their propaganda, hook, line, and sinker.

LurkingTom Loc: North Dakota

:thumbup: