Correcting a video

Wall Street has long dreamed of privatizing Medicare and Social Security, so that $1.4 trillion collected in FICA taxes each year goes straight to the financial thieves, who will use it to make their tyranny worse than ever. And they don’t have to pay benefits, since they will simply claim that, “There was a market downturn.” No one is rich enough to argue with them.

Anyway reader “Beaner” mentioned a video that exemplifies how some people love to whine that “the sky is falling” in order to get attention. By foretelling doom, they can strut before an audience, chattering about nothing for hours. (Politicians do the same thing. “The sky is falling, but I’m here to protect you. Worship me.”)

This crap works. The video below has over 93,000 views.

You, dear reader, understand the facts about money because you broke out of your shell of hate and selfishness. You evolved because you were so compassionate toward your fellow humans that you thought “What is this money thing anyway?” You were like the legendary Buddha who beheld the suffering of people outside his palace, and resolved to find a cure. And, like the Buddha, you cannot enlighten anyone. You can only show people the doorway. People must voluntarily choose to step through it.

It can be discouraging to constantly  have people cling to their stupidity, but humor can save us. We must have fun with this stuff.  Humor leads to insights and to breakthroughs that cannot be achieved via logic alone.

Anyway let’s correct this stupid video:

CLAIM: The U.S. government is far more than $20 trillion is “debt,” since the government has “unfunded obligations.”

CORRECTION: Every government on the planet – indeed every human alive — has a need for future spending, and therefore has “unfunded obligations.” As a human, you must eat today, and you must buy food tomorrow. At present you do not have the money to buy tomorrow’s food (i.e. future food). Therefore you have a (temporarily) “unfunded obligation.” Eating is an obligation.

The U.S. government is infinitely funded. You are not. The U.S. government creates its spending money out of thin air. You cannot.  Therefore “unfunded obligations” is no problem for the U.S. government.

CLAIM: “Unfunded obligations” are money that the U.S. government has promised to pay, but does not have, and will not have.

CORRECTION: See above. By the way, the speaker claims that Medicare and Social Security “trust funds” are bankrupt. These “trust funds” are accounting fictions. Accounting is supposed to be about math and numbers, and yet “creative accounting” (i.e. fraud) is rampant in this world.

CLAIM: The U.S. government has total financial obligations of $220 trillion.

CORRECTION: The U.S. government has total financial obligations that are infinite, since we do not know how long the U.S. government will exist. The “Monopoly” board game has financial obligations for as long as people play a particular game. A scoreboard has points obligations for a long as a game continues.

CLAIM: The government can technically create more money, but when it does so, it causes inflation.

CORRECTION:  No. Inflation only becomes a problem when there is (a) a surplus of money combined with (b) a shortage of things to spend money on. Both factors must be present. Neither factor exists in the USA. If average Americans had more money, they would buy more stuff, and thereby create more jobs. The rich do not want this, because in a world where money equals power, the power of rich people depends on keeping average people starving for money.

If inflation ever did become a problem, the U.S. government would have to do one of three things in order to control it.

[1] Remove money from the economy

[2] Boost production of goods and services to spend money on

[3] A combination of #1 and #2

During World War II everyone had a job, but production was mainly for the war. So everyone had cash, but there was a shortage of consumer goods to spend their money on. This created a potential inflation problem for the U.S. economy. If inflation got out of control, the economy would become so unstable that the USA would lose the war. Therefore, since production was already at full capacity, the government needed to remove money from the economy. The U.S. government did this by introducing the payroll withholding tax, and by selling “war bonds” that paid interest, and which functioned just like T-securities today. The government falsely told the public that the tax revenue and the war bonds were needed to “fund the war.” Money that people spent to buy “war bonds” was destroyed, i.e. removed from the economy. That money was later paid back to bond holders in a slow and controlled trickle as war bonds matured.

Venezuela has an inflation problem because Venezuela has (a) excess money, caused by the U.S. government pumping dollars into black market currency trading, combined with (b) a shortage of consumer goods, caused by distributors withholding goods, in order to deliberately cause inflation.

Shortages also occur because Venezuela has been so dependent on oil revenues that it lost its self-sufficiency, and must import most of its consumer goods. The fall in oil prices reduced Venezuela’s supply of foreign currencies, which reduced imports, which caused shortages, which caused inflation when combined with excess money in circulation.

To ease inflation, the Venezuelan government must…

[1] Remove money from the economy

[2] Boost production of goods and services to spend money on

[3] A combination of #1 and #2

Why doesn’t the Venezuela government do this? Why doesn’t the government shut down all black market currency trading, and imprison all distributors of consumer goods who are caught hoarding? My suspicion is that many members of President Maduro’s PSUV Party members at the state and local levels are corrupt, and are personally profiting from the economic chaos.

Venezuela never became truly socialist like Cuba. Therefore Venezuela has an inflation problem, unlike Cuba. The Cuban government has carefully controlled its currency, along with the production of goods and services. In any nation over time, this always leads to stagnation, and a dying economy. Therefore Cuba recently started to ease up on controlling the economy, and is giving people incentives to start small businesses. The Cuban government has realized that the ideal situation is not socialism, but a careful balance between socialism and capitalism.

How does a national leader achieve such a balance? By loving his people more than he loves himself.

Which brings us to another topic…

Q: Which system is best? Socialism? Capitalism? Monarchy? A mixture of all three?

A: It depends on the nature of a society’s leaders. If they are kind and compassionate, then their citizenry will be happy, regardless of what economic system they use. However, if the leaders are evil and selfish, then the people will suffer, regardless of the economic system they use. Joseph Stalin was evil, but this does not mean that socialism is evil. Likewise, there are good people in capitalist societies, but this does not mean that capitalism is good. Everything depends on the nature of a society’s leaders. Their nature will heavily influence the nature of the masses. The USA’s leaders are evil. Therefore the masses suffer, since many average people (like the person in the video above) participate in the evil.

CLAIM: When the government prints money, it drains the purchasing power of your savings. Inflation is a tax on savings.

CORRECTION:  If the government does not print money, then banks will create all money as loans. This will cause total debt slavery; the ultimate “tax on savings.” As I explained above, there are several ways to control inflation. You must boost production and / or reduce the money supply.

If you believe the person in the video above, then you will be enslaved and impoverished. That is the dream of neo-liberals. Below is their paradise.

Then the video really wades deep into bullshit.

CLAIM: It is a myth that the U.S. government cannot go bankrupt. The government pays for its bankruptcy by taxing the purchasing power of people’s savings.

CORRECTION:  The U.S. government is not bankrupt, and never will be. Period. Can a scoreboard be “bankrupt” of points?

CLAIM: It is a myth that the U.S. government can solve its financial problems by raising taxes.

CORRECTION:  The U.S. government has no financial problems, just as a scoreboard has no points problems.

CLAIM: The U.S. government does not need to pay off its debts, only service them.

CORRECTION:  What you call “debts” is money deposited in Fed savings accounts. When you buy a T-security, the money that you pay is deposited in a Fed savings account. Your money is on loan to the Fed until the T-security matures, at which time the Fed gives your money back, plus interest. In a regular bank, the money in your checking or savings account is on loan to the bank. It is a “debt,” but it is also an asset.

This has nothing to do with the U.S. government’s ability to create and spend money. The U.S. government does not borrow one penny of its spending money, just as a scoreboard does not borrow any of its points.

After the video, a YouTube viewer comments…

He does not mention the Federal Reserve, which is a private corporation run by dual U.S.-Israeli citizens. Why is the U.S. government bankrupting its citizenry? Why are we paying interest to a private entity to print our money? The privately owned Fed creates money out of thin air, and lends it to the U.S. government. This is why we can never get out of debt, and why we will never see prices go down. People have no idea how our economic system works, and no realization that it is the root of our problems. End the Fed and take back control of the issuance of our nation’s money supply. It will save us immense sums of interest, and it will end inflation.

This person suffers from Ellen Brown Syndrome (EBS) the crippling illness that makes people think that all money is created by banks as loans. His comment reveals why EBS is so strong. He wants to say that Jews run the Fed and the Treasury (which to some extent is true) but since society does not allow him to say this openly, he must say it indirectly. Society’s taboo causes him to feel frustrated, and therefore fixated. “End the Fed! End Jewish control! JEWS LEND US OUR MONEY!”

As I see it, the USA is a larger version of Israel. For every Israeli atrocity, there are five U.S. atrocities. Every civilian murdered by the USA or Israel is a “terrorist” and a “human shield.” Every nation they attack “needs democracy.” Israel has the Gaza Death Camp. The USA has Guantanamo. To claim that “America is controlled by Jews” is to claim that average Americans are different from Jews. (Some Americans really are different, but for the most part, I see no difference.)

The taboo against questioning Jewish supremacy causes obsession, which in turn seals people in the EBS cocoon.

On YouTube, none of the reader comments pointed out the video’s errors. Everyone believed the nonsense, because they want to believe it. The peasants can’t sleep at night without some “crisis” hanging over them.

PARTING SHOT

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