Time for your daily dose

bowl 3bowl 4

Yes indeed, it’s time for your daily helping.

A new, free-to-play game invites players to keep the USA’s “national debt” in check by choosing policies that “fulfill your vision of what America should be.”

The Fiscal Ship was developed by two right-wing propaganda mills in Washington DC: The Brookings Institution and the Woodrow Wilson Center, and was funded by the Peter G. Peterson Foundation.

Where did they get that “Fiscal Ship” title? Perhaps from this 1967 song…

fiscal shit3In the game you will learn such meaningless things as “the debt is 75% of the size of our economy.”

Actually the debt is 112% of US GDP, if we assume that the World Bank is correct when it says the U.S. GDP is $17.42 trillion.

The “national debt” is simply the amount of money that various parties (including the U.S. government) have deposited in Fed savings accounts. These deposits place no constraint whatsoever on the U.S. government. Nor will any individual, rich or poor, ever have to pay one penny on those deposits, although the Fred creates about $240 billion a year out of thin air to pay the interest on those deposits.

fiscal shit

In the game you will learn other meaningless things such as “Unless you act, 25 years from now the debt will be at levels never before seen in this country.”

Actually the amount of money on deposit at the Fed is already at levels never before seen in this country. Fortunately this has nothing to do with the U.S. government’s ability to keep creating money out of thin air.

Unfortunately, private debt will continue to strangle us. When your city, county, or state sells bonds to Wall Street, and must impose austerity in order to pay the debt, that is strangling you.

fiscal shit2

The game asks you to choose between raising taxes (on average Americans) or cutting spending (on average Americans). Either way increases inequality, which the game refers to as “reducing inequality.”

Of course, the “national debt” has no bearing on the amount of money the U.S. government can create or tax back.

You will learn how to “protect the elderly” by privatizing Social Security so that Wall Street thieves can steal it all.

Here’s a two minute video connected with this bullshit…

And a 90-second video that shows you how to play…

players

 

Advertisements

4 thoughts on “Time for your daily dose

  1. EH: Our buddy Mike Norman (you did a blog post on him here in March) sells a course on his own MMT Mike Norman Economics Blog called “Understanding the Daily Treasury Statement” for $95.

    He swears the info gathered from the Statement is the key to his ability to make brilliant forex trading calls. (Whatever.) He also claims govt “flows” derived from the DTS are the key to understanding the US economy. (Well, OK)

    The mind blowing thing I note when I examine the DTS is the incredibly large volume of dollars involved in the issuing and redeeming of Non-Marketable Bonds held in “Government Accounts.” So far in fiscal 2016 the issues and redemptions on these government accounts both exceed 45 trillion dollars.

    Online research (OFS website) indicates 18 primary and 232 secondary government accounts.

    EH, are the bonds involved in these various accounts a backdoor method for the federal government to “pay itself” interest ($ derived out of thin air) on its own accounts without the necessity of securing dollars via Congressional budget approval?

    https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=16042700.txt

    Like

    1. “EH, are the bonds involved in these various accounts a backdoor method for the federal government to “pay itself” interest ($ derived out of thin air) on its own accounts without the necessity of securing dollars via Congressional budget approval?”

      I haven’t yet been able to find an answer on that. What’s certain is that fiscal figures published by any aspect of the U.S. Federal government are never correct. Not ever. No one knows how much money the U.S. government creates in a given year. Much of it is stolen because it is off-budget (for reasons of “national security”).

      Like

      1. Hi EH-Yes, I agree, there is way too much off books financial activity in the “interest of national security” that would never be made publicly available. Never -the-less, the DTS deals with some incredibly large numbers. (They are very easy to comprehend and relate to if you understand the CONTEXT in which those dollars flow through the federal govt. accounts.)

        Looks like a missed by a mile on the topic of non-marketable US Treasury Securities. According to Treasury, these are just like marketable securities except they are non-transferable and cannot be sold in the secondary market.

        Interest payments on non-marketable securities make up approx. 40% of all interest paid (to holders) in any given fiscal year. Non-marketables (just as Marketables) are held mostly by pension funds, banks, state & local governments, foreign entities, foreign governments, insurance companies and private US citizens.

        Due to the impossibly large amounts of issues and redemptions on all types of US securities, the subject of “federal debt is a problem” is deemed absolutely unwarranted. (As is the case for the Highway and SS Trust Funds, I suspect that many federal agencies do rely on bond interest as a source of backdoor funding through the federal government’s own loan facilitation program.)

        Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s