Skip to comments.Debt Ceiling proposal and the National Debt(Vanity)
Posted on 10/10/2013 3:58:09 PM PDT by mdittmar
Lets raise the Debt Ceiling to 100 Trillion dollars,it's all borrowed money anyway,digitized,monetized,whatever.
We pay off the 17 Trillion dollar debt,send everyone in the United States a check for a 1000 dollars and there will be trillions left over to fund everything!
Do you have any savings? They will be wiped out if this is done.
There would be virtually unlimited money available to spend on goods. The value of saved money would drop. Prices would skyrocket.
We're at 17 trillion now,I see some inflation,but I don't have unlimited money to spend on goods,1000 dollars would help.
Sorry you are short of cash, but with your plan, that 1000 bucks from the government would buy you what is now maybe $100 or $200 worth of goods. Meanwhile, anyone who might hire you wouldn’t, because they’d have had their assets wiped out. Read about what happened in Germany in the 20’s when the government decided it had to print its way out of debt. It was a disaster which paved the way for the Nazis along with completely wrecking the society.
I think I will raise my debt ceiling to a couple billion and buy some mansions, some furniture, some Porches, a private plane some huge diamonds........don’t you think that is a cool idea?
Obama asks the Fed to print $17 Trillion and loan it to him.
Obama takes the $17 Trillion and pays off the National Debt.
Since the total cost for the Fed to print the $17 Trillion is approximately $ZERO, Obama asks them to write off the loan. Money from thin air simply returned to thin air.
The Fed Accepts the request and predicts non-stop growth in the U.S. economy going forward.
The Stock Market jumps 3000 point in one day.
Life is good. We're all rich.
Gonna go out and buy that "67" Camero I always wanted.
That’s better than my idea.
You don’t get it.
The debt owed by the US Treasury is paid back from TAXES.
The Treasury issues bonds in exchange for cash. The Treasury then pays pack the bonds with interest.
Large banks, central banks, pension funds, insurance companies, etc., etc., own the bonds; just like they keep a certain amount of cash on hand, they also keep a certain amount of liquid investement securities on hand (including Treasury, municipal, corporate, etc. bonds).
The Treasury bonds are viewed as such solid investments, and they can be bought and sold in the bond market, so that they are considered just about as good as cash in terms of being a low-risk, liquid investment. After all, the source of money to pay back principle and interest is the US taxpayer.
They all earn interest on their bonds - and can use their bonds as collateral as well.
Since the Federal government (every President and Congress) borrows about 40% of the money it spends (the rest comes from taxes), Congressmen are desperate to keep their ability to borrow - therefore they need to come hat in hand to the bankers, who then have tremendous “backroom” control of the Congress and President. All of them, not just Democrats.
If the government just created money - like it is Constitutionally authorized to do - it would no longer have to borrow. The people doing all the lending to the government would then lose their control over government, since government would no longer need them. This is why the bankers make sure they control Congressmen and much of the Executive branch leadership. They’ve been controlling much of our electoral process and government for over a century. They ensure with all sorts of tactics that the idea of government creating its own money is rejected by the public as crazy, wrong, bad, etc.
Short answer: the power people want that government debt to keep going up, the last thing they want is for it to be paid off and have no new borrowing. This is why the money people use all the influence they have to keep government spending going up like crazy. Both parties do this, each on their own “specialties”.
In the end, the whole idea is to enslave the taxpayer with high taxes. The deficit spending and borrowing ensures that taxes on “the little people” will remain high. The same financial interests also control schools, the media, etc. The Dem - Repub political parties are just a show put on for the little people so they don’t see how they are being dominated by global financial elites.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.