Archive for May 23rd, 2011

23
May
11

reboot

I did try to get a post out yesterday, but anything I wrote just seemed so… well…  “lite.” Sometimes the world seems so terminally stupid, one just doesn’t want to add any more empty calories to the fruitcake mix.

Here’s an idea for you to sink your teeth into if you can get past a natural first inclination to dismiss it as nutty…

For the last week or so I’ve been following the stalemate being reported on the radio in Minnesota between the Democratic governor and the Republican legislature as they argue about how to arrive at a balanced budget. The governor, who wants to cut spending and raise taxes on the highest-income Minnesotans, has said he’ll meet the Republicans halfway; the Republicans refuse to compromise and have devoted their time instead to passing an amendment to the state constitution outlawing same-sex marriage. They’ve got their own priorities, I guess.

The same thing is happening in Washington with the national budget.

Last week Austan Goolsbee, chairman of the Council of Economic Advisors, appeared on The Colbert Report and framed the budget impasse along the same lines as the situation in Minnesota. The Obama Administration wants a combination of spending cuts and tax increases on the top 2% of American income earners, and his red-tie opponents in the Congress want all budget balancing to be achieved through spending cuts alone. Goolsby said many of the proposed cuts would prevent economic recovery and would be pretty stupid.

“Why don’t we take a page from the average American and just walk away from our debts?” Colbert asked.

Goolsbee laughed in a very charming and dismissive way and said that definitely wouldn’t work. He warned that if the government were to default on its obligations, Social Security checks would stop being issued to old people and soldiers would stop being paid. But he significantly did not raise the possibility of the private bankers taking it in the shorts.

Why not?

I read somewhere that an amount equal to all of the money raised through personal income taxes, from rich and poor alike, goes to pay the interest on the national debt—to the bankers, in other words. It is only the amount raised through corporate taxes which goes to pay for any of the real services government provides. (It is thus no wonder that government primarily serves corporate interests while the interests of regular folks are ignored.)

With the passage of the Federal Reserve Act of 1913, the federal government entered into a relationship with a private institution (the Federal Reserve Bank, which is owned by a handful of the most powerful banking families in the world) through which the Fed agreed to loan the politicians as much money as they wanted as long as the politicians secured the debt by “direct taxation” on the people. So the personal income tax was born.

Today the national debt has grown to such proportions that there is no possibility of its ever being repaid. So why not walk?

Federal Reserve Notes are worthless anyway. They’re fiat money and backed by nothing tangible. Each Federal Reserve Note represents debt, not wealth. Each FRN is borrowed into existence out of thin air and is backed by only our continuing willingness to repay the debt it represents. The Congress has the authority to issue US currency—an authority long ago outsourced to a cabal of well-dressed thieves.

I say screw the bankers. They’ve been screwing the people for 98 years, which is long enough. They’ve already got all the gold, and they think they own you and your kids too.

Without our crushing debt burden, creating balanced budgets would be easy (or easier) for the politicians to do. There’s enough productive capacity in America to satisfy everyone’s need, but not everyone’s greed.

It’s time to reboot the whole broken system and take back our freedom.

۞

Groove of the Day

Listen to The Talking Heads performing “Burning Down the House”