I must leave for an appointment, so this post will be very short. A quickie. By the way, I put those colorful header images above because this world is a depressing place. A dash of color is meant to lighten our mood.
Just now I saw one of those articles that encourage readers to send donations to “pay down” the money deposited in Fed savings accounts (aka pay down the “national debt”).
A paragraph in the instruction booklet for tax Form 1040 says you can make donations to those Fed deposits (i.e. you can throw your money down a toilet) by sending a check to the “Bureau of the Fiscal Service” in Parkersburg WV. Or you can go to www.treasurydirect.gov and click on, “How To Make a Contribution to Reduce the Debt.”
This is exactly like sending money to Santa Claus…
In case you think people don’t believe in Santa Claus, below is what boys and girls have sent to Santa since 1996, according to the U.S. Treasury…
One financial “expert” says that Santa will soon need so many donations that the U.S. government will have to institute a nationwide sales tax (or “value added tax”).
The financial “expert” says that money deposited in Fed savings accounts is “unsustainable.” Since military spending is sacred, and the masses don’t want cuts to Social Security, the U.S. government will be compelled to impose a national sales tax to “pay down” the Fed deposits. Otherwise credit ratings on U.S. Treasuries will plummet, the USA will collapse, and the world will be destroyed.
People love this trash because it lets anyone be an “expert” without understanding anything about economics. You only need repeat the magic words “unsustainable,” “Ponzi scheme,” “future generations,” “Zimbabwe” “How will you pay for it?” — and voila, you are the “smartest person in the room.” You may be invited to appear on news shows. You may even become the Fed Chairperson or the U.S. Treasury Secretary.
Another article says, The National Debt Is a Domestic Security Threat
The United States government will soon be spending more on interest payments than on national defense.
Rubbish. The Fed pays whatever interest it wants to pay on deposits in Fed savings accounts. The Fed currently creates about $250 billion per year out of thin air in interest payments. That’s less than a quarter of the money the U.S. government creates for weapons makers and for the War of Terror.
Incidentally this article refers to Biblical prophecy, so you know its claims are economically “sound.”
It’s amusing to watch people squirm. They have spent decades lying about the fake “national debt crisis,” and now Republicans have temporarily thrown those lies out the window.
Here’s another “expert” on economics…
Like people and businesses, America borrows money from those who have it, whether that’s a corporation or a country. Eventually, the debtor becomes a slave to the lender!
According to this nonsense, the U.S. government borrows all its dollars from corporations and from foreign governments — none of which can create U.S. dollars.
In reality, corporations and foreign government get paid in different currencies, including U.S. dollars, which ultimately come from the U.S. government (and from banks when they make loans). Yet the “expert” claims that the U.S. government is in debt to those who depend on the government for dollars.
The beauty of all this bullshit is that it can be used to destroy social programs. Or privatize them (same thing).
Okay, I gotta fly out the door. See you next time.