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US Treasuries not valued amid 500% debt GDP: Gross, Buffett

up the US Government. If Greece could create USD out of thin air, they would not be in trouble. It would be the same as a bank lending you money that you never intend to pay back, there is no hope you will ever pay the debt, not a chance but they lend it to you just for the asking. That is how the Canadian and US governments are operating. They lend it to themselves as to give the perception of solvency when in fact they are BROKE.

No one should have the unilateral power to create money. Otherwise, easy creation makes every unit of said money diminish in value. The creation of money should be the by-product of effort and investment, i.e. the result of a business decision. The problem of fiat currencies is simple:

Those who touch the money first get a direct benefit because prices do not reflect the new level of money; as the new money changes hands, supply is affected and prices tend, in general, to increase. It’s not that the commodities that our

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One Comment

  1. The Anarchist The Anarchist May 3, 2014

    This article s so silly. The author dismisses the fact that a monetarily sovereign government issuing its own non-convertible, fiat currency with a flexible exchange rate never depends on revenue per se to spend and can never, involuntarily, go broke, therefore, the author ignores the fact that the Federal government can simply destroy its own liabilities reduces its debt by up to 90%. It would not want to eliminate that debt all at once since then it would starve the private sector of net financial assets, i.e., the proceeds from deficit spending. Depriving the private sector of NFA forces it into more debt and could lead to recession.

    Factoring in future safety net costs as a reason to forego present investment is valid in the very short run. But not for the long run. If CBO projections of surpluses, deficits. GDP and other economic indicators after the Clinton Administration we’d be in the worst depression in our history.

    One need only understand the basics of national income accounting and grasp sectoral balance identities to fathom the effects of both monetary and fiscal policy in our three sector, macroeconomic system.

    No nation can tax itself into prosperity, nor grow without money growth. Monetary Sovereignty: Cutting federal deficits to grow the economy is like applying leeches to cure anemia.
    Two key equations in economics:

    1. Federal Deficits – Net Imports = Net Private Savings
    2. Gross Domestic Product = Federal Spending + Private Investment and Consumption – Net Imports

    Nine Steps to Prosperity:
    1. Eliminate FICA
    2. Federally funded Medicare — parts A, B & D plus long term nursing care — for
    3. Provide an Economic Bonus to every man, woman and child in America, and/or
    every state a per capita Economic Bonus. Or institute a reverse income tax.
    4. Free education (including post-grad) for everyone.
    5. Salary for attending school
    6. Eliminate corporate taxes
    7. Increase the standard income tax deduction annually
    8. Increase federal spending on the myriad initiatives that benefit America’s 99%
    9 Federal ownership of all banks

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