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patches70 wrote:You are all looking at it wrong. Forget taxes, balancing budgets, it can't happen. To do so is to destroy the currency.
It was in 1971 when we embarked on this new system of a pure fiat money system. Before that the amount of currency flowing was restricted by the amount of gold held. Nixon put an end to that and famously uttered the words-
"Well, we're all Keynesians now" and all this is a consequence.
The reason why Reagan did so well is because deficits stopped mattering. This is quite easily done with a fiat currency, to a point. We are now reaching that point where it can no longer support itself since everything must continue to grow. There is always a point where you cannot grow any more. At that point it all implodes.
Balancing the budget won't work, just as "paying off the debt" is impossible. Not just because it's an insurmountable sum ($16.3+ trillion), it's because the currency created must be paid back but the interest itself is never created.
If I print up a $100 and it's the very first $100 of my currency that everyone, by law, must use, with the stipulation that the $100 must be paid back to me with 6% interest, tell me, where does that extra $6 come from that you must pay back as interest? It doesn't exist.
To pay me that interest, you must borrow from me again, maybe another $100 and then you'll have the $6 interest to pay me back. Of course, you'll owe me that second $100 plus another $6 of interest and you'll now be $12 short. You start to see how this system works?
It's a scam. The interest keeps growing and growing until it finally reaches the point where the interest itself is too great a burden. To actually pay back the debt is to turn in every single dollar in circulation that exists in the entire world, and the interest would still be due.
The only time our nation was ever debt free was back in Jackson's time. When we had a debt free currency. That is, the money that was used didn't have to be paid back to anyone just because it was created in the first place.
The purpose of money is to facilitate trade and services so that people may lead productive and virtuous lives. That's the original purpose. But when you have a single private entity, partnered with government force, money turns into another form of control. The exact opposite of what money's original purpose was for. The dollar is debt. That's not money you are carrying around in your wallet, it's debt.
This is the true underlying problem and it can be solved with the stroke of a legislative pen. But there would be consequences to such legislation. Consequences TPTB are not willing to face (and collectivists as well). Those consequences are the reason we went to this current system back in 1971. It works well in the short run, but long term it's always a loser. Always has been, always will be. Fiat currencies only average a lifetime of around 37 years. Our current system has been in existence for 43 years or so. It's on it's last legs, an old timer as far as fiat currencies go.
The sooner we all understand this the better off we'll be. Because when this current incarnation finally expires, if we don't understand what we had, we'll just be saddled with yet another scam of a monetary system.
PLAYER57832 wrote:Too many of those who claim they don't believe global warming are really "end-timer" Christians.
Metsfanmax wrote:I trust career politicians to keep our government running a lot more than I trust the average voter.
Funkyterrance wrote:jay_a2j wrote:I'll tell you what I think. (popular or not it seems the only logical explanation)
The US government is purposely destroying the US economy. Other than those getting "free stuff" from Obama, not a single person in this country should support this man. He took the fiscal cliff and got an INCREASE in spending and a tax increase on 77% of Americans (is that about equal to ALL working people?) Then he has said he will not budge on the debt ceiling. Dude, it doesn't take a rocket scientist to see into the future with policies like this! No one is this stupid. There is no way our leaders can honestly believe that bailouts, TRILLIONS $ added to debt each year, increasing the amount we can borrow (debt ceiling), increased spending is in any way going to BALANCE a 16.3 TRILLION DOLLAR DEFICIT!!!!!!!!
Don't you think you may be oversimplifying a little?
_sabotage_ wrote:Metsfanmax wrote:I trust career politicians to keep our government running a lot more than I trust the average voter.
Fascist much?
Metsfanmax wrote:_sabotage_ wrote:Metsfanmax wrote:I trust career politicians to keep our government running a lot more than I trust the average voter.
Fascist much?
I wouldn't say it that way. I just think that the complexities of a government for 300 million people are too much for the typical citizen to process.
Metsfanmax wrote:_sabotage_ wrote:Metsfanmax wrote:I trust career politicians to keep our government running a lot more than I trust the average voter.
Fascist much?
I wouldn't say it that way. I just think that the complexities of a government for 300 million people are too much for the typical citizen to process.
_sabotage_ wrote:Colonial script was a fiat system that worked rather well according to Ben Franklin.
jay_a2j wrote:Wow! Makes sense. So, the financial system was doomed to fail from the beginning! At least once we did away with the gold standard.
Metsfanmax wrote:I trust career politicians to keep our government running a lot more than I trust the average voter.
_sabotage_ wrote:Colonial script is subject to it's supply and demand, just as gold is. The colonial script failed as it was attacked by the bankers and the revolution created an excessive need for currency, just as gold from the vaults would be depleted in a similar situation. The difference between gold and the colonial script, is that we could keep on printing it and keep fighting, but if our gold ran out and we had no fiat currency, we would be holding our shafts.
It is impossible for the US to return to a gold standard since we have no gold. We could use silver, but the basic concept is still the same: we can put value on anything we choose, whether it be gold, paper, sticks, shells or stones. The insistence to return to a gold standard would just be putting ourselves back at the mercy of bankers who emptied Fort Knox long ago and sent it to Europe.
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