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Lv 621.707 points

marvinsussman@sbcglobal.net

Favorisierte Antworten23%
Antworten4.130

Born in Chicago, 1923. WWII veteran, US Army, VII Corps, 4th Cavalry Squadron, A-troop, 2nd platoon, 1st squad. rifleman. Normandy to the heart of Germany. Paratus et Fidelus. Retired engineer. Married. Three sons, four grandchildren. Atheist. Living the condo life.

  • For taxpayers, is our "national debt" really a burden that must be repaid?

    No. For taxpayers, it is not a real debt. It’s a “Debt In Name Only”. It’s a “DINO”

    THE DINO IS NOT NOW AND NEVER WILL BE A BURDEN FOR TAXPAYERS. When an Chinese exporter buys a US bond, her money is deposited into her Fed bond account which is like any other savings account. At maturity, the Fed merely moves those same dollars from her Fed account to her bank account. A taxpayer’s dollars are NEVER EVER needed to “pay off” the principal. The “debt” scare is Wall Street’s hoax on Main Street voters.

    New bond issues finance the interest expense, recapturing the interest payments and conserving the money supply. As no physical resources are consumed, there is no inflationary effect. For those reasons, CBO budget economists deal mainly with the “primary” budget, excluding annual debt interest expense.

    THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID. Only a budget surplus can reduce the DINO. Since Truman, every President has left office with an increased DINO and no annual budget surplus is now in sight. To supply enough risk-free US bonds used for trade collateral, insurance, pensions, bank reserves, etc., the DINO MUST GROW with the economy! Our world needs the DINO!

    11 AntwortenPoliticsvor 7 Jahren
  • What is the value of the minimum required national debt?

    What is the value of the minimum required national debt?

    The correct answer is over $24T. The current national debt is about $6T too low. No wonder we are suffering!

    Every federal dollar spent and not repossessed by the IRS is saved by the private sector. Assuming that trade is balanced over the long haul, the national debt is equal to the total savings of the private sector. There is no other legal source of savings.

    According to the Social Security Administration, the average of 27 million SS beneficiaries has a monthly income (other than SS benefits) equal to $1,800. If the average American retires at 65 and survives 15 years (180 months), that comes to 180 x $1.8K = $324K in savings needed by each retiree to live decently (?). Halfway to the grave she will have still have $162K, the average amount in savings for all 27 million retirees. That’s over $4.3T for everyone.

    To save $324K over 40 working years and saving a constant amount yearly, an individual should save half of it in 20 years. Allowing for the fact that she will do most of her savings after the midpoint, let’s divide the total by 4 to arrive at an average midpoint savings of $81K. For 250 million adult individuals aged 18 to 65, that comes to over $20T required savings.

    For the entire population of adults, the required savings is (over) $4.3T + (over) $20T = (over) $24T.

    That is the value of the minimum required national debt, assuming no accumulated trade deficit.

    http://www.ssa.gov/pressoffice/basicfact.htm

    4 AntwortenPoliticsvor 7 Jahren
  • What should be the optimum value of the national debt? (Warning! Answer needs arithmetic!)?

    The correct answer is $26T. The national debt should be at least $8T more than it is.

    Every federal dollar spent and not repossessed by the IRS is saved by the private sector. Not counting bank debt and assuming that, over the long haul, trade is balanced, the national debt is equal to the total accumulated savings of the private sector, to the penny. There is no other legal source of savings.

    If the average American retires at 65, survives 15 years (180 months), and needs $1,800 monthly (current average income of 27 million SS beneficiaries*) to live decently (?), that comes to 180 x $1.8K = $324k in savings needed by each retiring person. The average savings at the halfway point to heaven or hell are $162K. For the entire 27 million retirees, that comes to $4.4T in current savings.

    To save $324K over 40 working years, an individual will have to save on average $8,1K annually. At the halfway point, she should have $162K. Allowing for the fact that she will do most of her savings after the midpoint, let’s divide that by 2 to arrive at an average midpoint savings of $81K. For 270 million working individuals, that comes to almost $21.8T required savings for the working community.

    For the entire population of adults, the required savings is over $26T. That is the optimum national debt assuming no accumulated trade deficit.

    * http://www.ssa.gov/pressoffice/basicfact.htm

    5 AntwortenPoliticsvor 7 Jahren
  • Were Libertarians beaten by their parents?

    What else could cause the problem?

    13 AntwortenPoliticsvor 7 Jahren
  • For adults only: can you find a flaw in this logic?

    Rules of the debate: To win the debate, you must disprove at least one of the claims made in my argument by quoting the claim(s) fully and showing the error exactly. To accept these claims and simply deny the logical conclusion is to be a child declaring victory after losing the game. Adults only!

    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

    Q1: For taxpayers, is our “national debt” really a burden? Must it really be repaid?

    A1: No. For taxpayers, it lacks the qualities of a real debt. It’s a “Debt In Name Only”, a “DINO”-*

    1. THE DINO IS NOT NOW AND NEVER WILL BE A BURDEN FOR TAXPAYERS.

    It is not the taxpayers but rather the buyers of newly-issued treasuries who, in a virtual bond rollover, pay for redemption of mature treasuries. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed, with cost-free keystrokes, could increase the demand for treasuries by buying large quantities in the open market. Where is the “unsustainable” burden for taxpayers?

    While a bank holding too many bad loans can certainly hold too many maturing CDs, our non-lending Treasury cannot hold too many maturing bonds unless its deficit spending causes harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, regulate the banks before stopping work on infrastructure projects!

    2. THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID.

    Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. To supply enough treasuries, the ONLY risk-free securities used for trade collateral, insurance, pensions, bank reserves, etc., the DINO MUST GROW with the economy!

    Every federal dollar spent and not taxed is saved by the private sector. Yes! DEFICITS = SAVINGS! The Treasury has a “national debt” and the private sector has a “national asset”! The bad “Debt Clock” is also the good “Asset Clock”. Since, with our trade deficit, we can’t import money, deficit spending is our economy’s SOLE source of savings! In fact, unless large budget deficits replace the exported cash, deflation will soon freeze our economy. Who would spend a dollar today if it would buy more tomorrow?

    Our (DINO + total bank deposits) / GDP ratio is less than half of China’s comparable figure. Our M2 (money supply) / GDP ratio is half of Switzerland’s ratio and one fourth of Hong Kong’s ratio. To become and stay prosperous, we need to DOUBLE the DINO / GDP ratio to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation. Ask Grandma about the good old days!

    Q2: Won’t the annual debt interest expense explode the budget?

    A2: Bond-holders’ taxes return about 20% of their interest income. New bond issues finance the rest. As no physical resources are consumed and the money supply does not change, there is no inflationary effect. About 80% of the interest is added to the DINO, which is good. For those reasons, CBO budget economists deal only with the “primary” budget, which excludes the annual debt interest expense. If necessary, the Fed can practically eliminate the cost of interest. During World War II, the Treasury issued debt at near-zero interest cost. Purchasers were assured that bonds would sell near face value.

    Q3: Could savers make a “run” on US Treasury bonds?

    A3: Only when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

    Q4. Could savers stop buying US Treasury bonds?

    A4. Only when nobody needs risk-free interest for trade collateral, insurance, pensions, bank reserves, etc., etc.

    Q5: Could savers prefer foreign sovereign bonds?

    A5: Yes, indeed! Now, almost two thirds of the world’s reserve currencies are in US dollars and about half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its sovereign bonds could become safer than ours. But that could happen only if US voters let their DINO concerns stop the renewal of falling bridges, failing schools, leaking sewers, creaking railroads, aging power grids, etc. Money can be printed, but infrastructure has to be built with real resources over time, which has no substitute.

    6 AntwortenPoliticsvor 7 Jahren
  • For adults only: can you find a flaw in this logic?

    Q1: For taxpayers, is our “national debt” really a burden? Must it really be repaid?

    A1: No. For taxpayers, it lacks the qualities of a real debt. It’s a “Debt In Name Only”, a “DINO”-*

    1. THE DINO IS NOT NOW AND NEVER WILL BE A BURDEN FOR TAXPAYERS.

    It is not the taxpayers but rather the buyers of newly-issued treasuries who, in a virtual bond rollover, pay for redemption of mature treasuries. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed, with cost-free keystrokes, could increase the demand for treasuries by buying large quantities in the open market. Where is the “unsustainable” burden for taxpayers?

    While a bank holding too many bad loans can certainly hold too many maturing CDs, our non-lending Treasury cannot hold too many maturing bonds unless its deficit spending causes harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, regulate the banks before stopping work on infrastructure projects!

    2. THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID.

    Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. To supply enough treasuries, the ONLY risk-free securities used for trade collateral, insurance, pensions, bank reserves, etc., the DINO MUST GROW with the economy!

    Every federal dollar spent and not taxed is saved by the private sector. Yes! DEFICITS = SAVINGS! The Treasury has a “national debt” and the private sector has a “national asset”! The bad “Debt Clock” is also the good “Asset Clock”. Since, with our trade deficit, we can’t import money, deficit spending is our economy’s SOLE source of savings! In fact, unless large budget deficits replace the exported cash, deflation will soon freeze our economy. Who would spend a dollar today if it would buy more tomorrow?

    Our (DINO + total bank deposits) / GDP ratio is less than half of China’s comparable figure. Our M2 (money supply) / GDP ratio is half of Switzerland’s ratio and one fourth of Hong Kong’s ratio. To become and stay prosperous, we need to DOUBLE the DINO / GDP ratio to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation. Ask Grandma about the good old days!

    Q2: Won’t the annual debt interest expense explode the budget?

    A2: Bond-holders’ taxes return about 20% of their interest income. New bond issues finance the rest. As no physical resources are consumed and the money supply does not change, there is no inflationary effect. About 80% of the interest is added to the DINO, which is good. For those reasons, CBO budget economists deal only with the “primary” budget, which excludes the annual debt interest expense. If necessary, the Fed can practically eliminate the cost of interest. During World War II, the Treasury issued debt at near-zero interest cost. Purchasers were assured that bonds would sell near face value.

    Q3: Could savers make a “run” on US Treasury bonds?

    A3: Only when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

    Q4. Could savers stop buying US Treasury bonds?

    A4. Only when nobody needs risk-free interest for trade collateral, insurance, pensions, bank reserves, etc., etc.

    Q5: Could savers prefer foreign sovereign bonds?

    A5: Yes, indeed! Now, almost two thirds of the world’s reserve currencies are in US dollars and about half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its sovereign bonds could become safer than ours. But that could happen only if US voters let their DINO concerns stop the renewal of falling bridges, failing schools, leaking sewers, creaking railroads, aging power grids, etc. Money can be printed, but infrastructure has to be built with real resources over time, which has no substitute.

    Q6: Won’t we need higher tax rates to pay for infrastructure?

    A6: The function of taxation is to prevent inflation and moderate inequality of wealth. Congress NEVER asks the Treasury if can pass a spending bill. Effectively, it writes a check that the Treasury NEVER bounces. To finance a deficit, the Treasury auctions new bonds created out of thin air with keystrokes, like a bank makes a loan.

    10 AntwortenPoliticsvor 7 Jahren
  • For adults only: Can you find a flaw in this logic?

    Rules of the debate: To win the debate, you must disprove at least one of the 20 or so claims made below by quoting the claim(s) fully and showing the error exactly. To accept 20 claims and simply deny the logical conclusion is to be a child declaring victory after losing the game 20 – 0. Adults only!

    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

    Q1: For the taxpayers, is our “national debt” really a burden that must be repaid?

    A1: No. For the taxpayers, it lacks those two qualities of a real debt. It’s a “Debt In Name Only”, a “DINO”-**

    1. THE DINO IS NOT NOW AND NEVER WILL BE A TAXPAYER’S BURDEN.

    The DINO is the total value of all maturing treasuries. By calling the DINO “unsustainable”, Wall Street con artists, plotting to privatize Social Security and make a fortune in commissions, have panicked the public, politicians, and journalists. But actually, in a virtual bond rollover, it is NOT THE TAXPAYERS but rather the buyers of newly-issued treasuries who pay for redemption of mature treasuries. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed, with cost-free keystrokes, could create a demand for treasuries by buying large quantities in the open market. The TAXPAYER IS NEVER BURDENED but almost all adults swallow the hoax!

    Our Treasury is like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, regulate banks before cutting infrastructure projects.

    2. THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID.

    Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. Indeed, to supply enough treasuries, the ONLY risk-free instruments used for trade collateral, insurance, pensions, bank reserves, etc., THE DINO MUST GROW WITH OUR ECONOMY.

    Every federal dollar spent and not taxed is saved by the private sector. Yes! DEFICITS = SAVINGS! The bad “Debt Clock” is also the good “Assets Clock”. Since we are now exporting cash, deficit spending is our economy’s SOLE source of savings! In fact, depression will hit us hard unless large budget deficits replace the exported cash. Well, our (DINO + total bank deposits) / GDP ratio is less than half of China’s comparable figure and our M2 (money supply) / GDP ratio is half of Switzerland’s ratio and one fourth of Hong Kong’s ratio. To become and stay prosperous, we need to DOUBLE the DINO / GDP ratio to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation. Ask your grandparents how happy they were back in the good old days!

    Q2: Won’t the annual debt interest expense explode the budget?

    A2: Bond-holders’ taxes return about 20% of their interest income. New bond issues finance the rest. As no physical resources are consumed and the money supply does not change, there is no inflationary effect. About 80% of the interest is added to the DINO, which is good. For those reasons, CBO budget economists deal only with the “primary” budget, which excludes the annual debt interest expense.

    Q3: Could savers make a “run” on US Treasury bonds?

    A3: Only when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

    Q4. Could savers stop buying US Treasury bonds?

    A4. Only when nobody needs risk-free interest for trade collateral, insurance, pensions, bank reserves, etc., etc.

    Q5: Could savers prefer foreign sovereign bonds?

    A5: Yes, indeed! Now, almost two thirds of the world’s reserve currencies are in US dollars and about half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its sovereign bonds could become safer than ours. But that could happen only if US voters let their DINO concerns stop the renewal of falling bridges, failing schools, leaking sewers, creaking railroads, aging power grids, etc., etc.

    10 AntwortenPoliticsvor 7 Jahren
  • What's wrong with this picture?

    The US Treasury’s 2012 debt/income ratio was almost 800%.

    Our Treasury has too many bonds that it has to service and pay off.

    Our Treasury is facing a financial crisis.

    Chase Bank’s 2012 debt/income ratio was three times larger than Treasury’s ratio!

    But Chase Bank is trying to get more CDs to service and pay off!

    And Chase’s stock is expected to soar!

    Of the two, guess which can print money!

    Shouldn’t taxpayers fire Congress for distorting the financial analysis?

    2 AntwortenPoliticsvor 7 Jahren
  • For high school grads only: can you find flaws in this logic?

    Rules of the game: To win, you must disprove at least one of the 50 or so statements below. To simply deny the logical conclusion is to be like a child claiming victory after losing the game 50 – 0. Adults only!

    Q1: For the taxpayers, is our “national debt” really a burden that must be repaid?

    A1: No. For the taxpayers, it lacks those two qualities of a real debt. It’s a “Debt In Name Only”, a “DINO”-**

    1. THE DINO IS NOT NOW AND NEVER WILL BE A TAXPAYER BURDEN.

    The DINO is the total value of all maturing treasuries. By calling the DINO “unsustainable”, Wall Street con artists, plotting to privatize Social Security and make a fortune in commissions, have panicked the public, politicians, and journalists. But actually, it is not the taxpayers but the buyers of newly-issued treasuries who, in a virtual bond rollover, pay for redemption of the mature treasuries. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed, with cost-free keystrokes, could create a demand for treasuries by buying large quantities in the open market. The taxpayer is NEVER burdened but almost all US voters are swallowing whole the Wall Street hoax!

    Our Treasury is like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, regulate banks before cutting infrastructure projects.

    2. THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID.

    Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. Indeed, to supply enough treasuries, the ONLY risk-free instruments used for trade collateral, insurance, pensions, bank reserves, etc., THE DINO MUST GROW WITH OUR ECONOMY. In fact, deflation and then depression will hit us hard unless large budget deficits replace the cash that we are now exporting.

    Q2: Could savers make a “run” on US Treasury bonds?

    A2: Only when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

    Q3. Could savers stop buying US Treasury bonds?

    A3. Only when nobody needs risk-free interest for trade collateral, insurance, pensions, bank reserves, etc., etc.

    Q4: Could savers prefer foreign sovereign bonds?

    A4: Yes, indeed! Now, almost two thirds of the world’s reserve currencies are in US dollars and about half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its sovereign bonds could become safer than ours. And that could happen only if US voters let their DINO concerns stop the renewal of falling bridges, failing schools, leaking sewers, creaking railroads, aging power grids, etc., etc.

    Q5: Won’t we need higher tax rates to pay for infrastructure?

    A5: The federal government needs taxes but not for spending. Just as you would destroy your redeemed IOUs, the IRS destroys its receipts, actually shredding bills and melting coins for scrap. Since Congress cannot touch a cent of tax revenue, it creates new money out of thin air (just like your bank creates loans), deposits it in the Treasury, and spends it with checks. The Treasury auctions bonds to finance deficits that are limited ONLY by the will of Congress.

    The ONLY rational reason to restrict deficit spending is the onset of harmful inflation. Until then, Congress can finance both the DINO’s annual debt interest and our much-needed infrastructure. Every day, you fill your kitchen sink with water AND you prevent it from overflowing. Why can’t Congress fill our economy with money building infrastructure AND prevent harmful inflation? China builds 24/7 without harmful inflation. Why can’t we do that?

    2 AntwortenOther - Educationvor 7 Jahren
  • For high school grads only: can you find the flaw in this logic?

    Q1: Is our so-called “national debt” a serious debt, a burden that we must repay?

    A1: No, It lacks both of those two essential qualities of a serious debt. It’s a “Debt In Name Only”, a “DINO” -

    1. A serious debt is a burden. OUR DINO IS NOT NOW AND NEVER WILL BE THE TAXPAYER’S BURDEN.

    The DINO is the total value of all issued and still maturing treasuries. By calling the DINO “unsustainable”, Wall Street con artists have panicked the public, politicians, and journalists with a hoax designed to privatize Social Security and make a fortune in commissions. But it is not the taxpayers but the buyers of newly-issued treasuries who, in a virtual rollover, pay for redemption of the mature treasuries. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed could create an artificial demand for treasuries by buying large quantities in the open market with cost-free keystrokes. The taxpayer is NEVER burdened but almost all voters have swallowed the Wall Street hoax!

    Our Treasury is like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, regulate banks before cutting infrastructure projects.

    2. A serious debt must be repaid. OUR DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID.

    Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. Indeed, to supply enough treasuries, the ONLY risk-free instruments used for trade collateral, insurance, pensions, bank reserves, etc., OUR DINO MUST GROW WITH OUR ECONOMY. In fact, deflation and depression will hit us hard unless large budget deficits replace the cash that we are now exporting.

    Q2: Could savers make a “run” on Treasury bonds?

    A2: Yes, when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

    Q3. Could savers stop buying Treasury bonds?

    A3. Sure, when nobody needs risk-free interest for trade collateral, insurance, pensions, bank reserves, etc., etc.

    Q4: Could savers prefer foreign sovereign bonds?

    A4: Yes, indeed! So far, almost two thirds of the world’s reserve currencies are in US dollars and about half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its sovereign bonds could become safer than ours. But that could happen only if US voters worry more about the DINO than they worry about our falling bridges, failing schools, leaking sewers, aging power grids, etc., etc., etc.

    Q5: Won’t we need higher tax rates to pay for infrastructure?

    A5: The IRS destroys all of its receipts (just as you destroy your redeemed IOUs), actually shredding bills and melting coins for scrap. Since Congress cannot touch a cent of tax revenue, it creates new money out of thin air (like your corner bank creates loans), deposits it in the Treasury, and spends with checks. Then the Treasury auctions bonds to finance a deficit limited ONLY by a Congress that NEVER needs our taxes (which only prevent inflation).

    The only rational reason to restrict deficit spending is the onset of harmful inflation. Until then, Congress can and must finance both our DINO’s annual debt interest expense and our much-needed infrastructure. Every day, you fill your kitchen sink with water AND you prevent it from overflowing. Why can’t Congress build infrastructure AND prevent inflation? Why do we let Congress limit our economy to a single shift while our infrastructure rots away!

    3 AntwortenPoliticsvor 7 Jahren
  • For college grads only: can you find the flaw in this logic?

    Q1: Is our so-called “national debt” a serious debt, a burden that we must repay?

    A1: No, It lacks both of those two essential qualities of a serious debt. It’s a “Debt In Name Only”, a “DINO” -

    1. A serious debt is a burden. OUR DINO IS NOT NOW AND NEVER WILL BE A TAXPAYER’S BURDEN.

    Our DINO is the total value of all issued and still maturing treasuries. By calling our DINO “unsustainable”, a hoax meant to privatize Social Security and Medicare, Wall Street con artists seeking a fortune in commissions have panicked the ignorant public, journalists, and Washington politicians. But, effectively, the taxpayers do NOT redeem mature treasuries. In a virtual rollover, it is the buyers of newly-issued treasuries who redeem the mature treasuries! In every auction, more bonds are demanded than are available from new issues. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If necessary, the Fed could even create a demand for treasuries by buying large quantities in the open market with cost-free keystrokes. The taxpayer is NEVER burdened!

    Our Treasury does not borrow money like a home-buyer undertaking a mortgage. It is a custodian of funds, like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, let’s regulate the banks before restricting spending on infrastructure.

    2. A serious debt must be repaid. OUR DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID.

    Only a budget surplus can reduce our DINO. Since dropping the gold standard in1971, we have had only four years of very modest surplus. None is now in sight. To supply enough treasuries, the ONLY risk-free instruments used for trade collateral, insurance, pensions, bank reserves, etc., OUR DINO MUST GROW WITH OUR ECONOMY. In fact, deflation and depression will hit us hard unless big budget deficits replace our cash now flowing into China.

    Q2: Could savers make a “run” on Treasury bonds?

    A2: Yes, when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

    Q3. Could savers stop buying Treasury bonds?

    A3. Sure, when nobody needs risk-free interest for trade collateral, insurance, pensions, bank reserves, etc., etc.

    Q4: Could savers prefer foreign sovereign bonds?

    A4: Yes, indeed! So far, almost two thirds of the world’s reserve currencies are in US dollars and about half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its sovereign bonds could become safer than ours. But that could happen only if US voters worry more about our DINO than they worry about our falling bridges, failing schools, leaking sewers, aging power grids, etc., etc., etc.

    Q5: Won’t we need higher tax rates to pay for infrastructure?

    A5: Taxes only counteract inflation. Congress never spends tax revenue. The IRS destroys all of its receipts, actually shredding cash payments and selling the pulp. For spending, Congress creates money out of thin air (just like your corner bank creates loans), deposits it in the Treasury, and writes checks. Then the Treasury auctions bonds to finance the deficit, which is limited only by Congress and NEVER by tax revenue. The only rational reason to restrict deficit spending is the onset of harmful inflation. Until then, Congress can and must spend freely on our DINO’s annual debt interest and on much-needed infrastructure for the future. Every day, you fill your kitchen sink AND you stop it from overflowing. Why can’t Congress fill our economy with money AND prevent inflation? Ask them!

    9 AntwortenPoliticsvor 7 Jahren
  • Who out there supports the War on Drugs? And why?

    I mean: other than serious punishment for anyone (other than parents or guardians or a doctor) who supplies drugs to a minor.

    Why not end ALL trafficking by reducing the price to zero? Give it away in a local clinic to certified addicts.

    7 AntwortenPoliticsvor 7 Jahren
  • For college level minds only (long words): can you find the flaw in this logic?

    Q: Is our so-called “national debt” a real debt, an interest-bearing burden that we must repay?

    A: No, It lacks the two essential qualities of a real debt. It’s a “Debt In Name Only”, a “DINO” -

    1. A real debt is a serious burden. Our DINO is not now and never will be a serious burden for taxpayers.

    Our DINO is the total value of all issued and still maturing treasuries. Who pays for the redemption of mature bonds? It’s not the taxpayers! It’s the buyers of newly-issued treasuries who pay for the redemption of mature treasuries. It’s equivalent to a simple bond rollover done every day by bond-owners. In every auction, more treasuries are demanded than are available from the supply of new issues. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed could even create an artificial demand for treasuries by buying them in the open market with a few keystrokes. Where’s the awful burden?

    Our Treasury does not borrow money like a home-buyer getting a mortgage. It is rather a custodian of funds, like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending, fiat Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the sole cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, don’t restrict infrastructure spending for the future! Regulate the banks!

    The Treasury auctions bonds only because Congress requires that the proceeds finance the annual budget deficit. This requirement, now a relic of the former gold standard regime, was suspended during World War II, followed by 35 years of strong economic growth without harmful inflation. Now, under our fiat currency regime, Congress can again, without auctions, finance deficits out of thin air, the same way your corner bank financed your home mortgage.

    Crying that our DINO is unsustainable, Wall Street scammers have panicked the public and many ignorant journalists and politicians, in Congress and in the White House. It’s a hoax meant to yield a fortune in commissions by privatizing Social Security and Medicare. And, bribing Congress into austerity, the Wall Street con artists are nursing a huge army of unemployed labor that prevents the middle class from bargaining for better wages. As our rotting infrastructure renders our industry incompetent, it is that growing army of the idle that will become unsustainable.

    2. A real debt must be repaid. Our DINO will never be repaid and should never be repaid.

    Only a federal budget surplus can reduce DINO. Since dropping the gold standard in1971, we have rarely had even a modest budget surplus. None is now in sight. To supply enough treasuries, the ONLY risk-free instrument used for trade collateral, insurance, pensions, bank reserves, etc., our Dino must continue to grow along with our economy. In fact, deflation and then depression will hit us hard unless big budget deficits replace the cash now flowing into China.

    Q: Won’t we need higher tax rates to pay for infrastructure?

    A: Congress does not use or need our taxes for spending. The IRS repossesses enough federal spending to prevent harmful inflation and then destroys every cent of it. (Cash payments are shred and the pulp is sold). For spending, Congress creates new money out of thin air, deposits it in the Treasury, writes checks, and makes the Treasury auction bonds to finance the deficit, which is limited only by Congress and not by the availability of tax revenue.

    Every spent federal dollar not repossessed by the IRS is saved by the private sector. Our annual budget deficit is exactly equal to the annual increase in private sector savings. YES! DEFICITS = SAVINGS! No deficits, no savings! A tax deficit is a savings surplus. It is money left on the table for the savers by Uncle Sam because he didn’t need it to prevent harmful inflation and because consumers need it to consume. We do not have a “national debt”. We have a “national savings”. The bad “Debt Clock” is really the good “Savings Clock”. How can we have too much savings?

    Since bank loans must be repaid with interest and hard cash is moving to China, budget deficits (surpluses!) are the ONLY savings source that can sustain our economy. We need to DOUBLE our DINO / savings to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation, even with very high tax rates. Our (DINO + total bank deposits) / GDP ratio is less than half of the comparable figure for China. Our M2 (money supply) / GDP ratio is half of Switzerland’s ratio and one quarter of Hong Kong’s ratio. Too much savings?

    8 AntwortenPoliticsvor 8 Jahren
  • Why does Congress have to balance its budget?

    If you could legally print dollars in your attic, why would you balance your budget? Congress only has to balance full employment against harmful inflation. Why is something so simple so hard to see?

    15 AntwortenPoliticsvor 8 Jahren
  • For high school grads only: can you find the flaw in this logic?

    The Q & A dialog below is based upon works by: (books are available at all booksellers)

    * Frank N. Newman, former Deputy Secretary of the US Treasury, recipient of the Treasury’s annual “Alexander Hamilton” award, author of “Freedom from National Debt” (Two Harbors Press)

    * Francis X. Cavanaugh, US Treasury economist for over 30 years, author of “The Truth about the National Debt”: Five Myths and One Reality” (Harvard Business School Press)

    *Warren Mosler, economist, author of “Seven Deadly Frauds of Economic Policy” (Oxford U. Press)

    *Dr. Stephanie Kelton, Chair of the UMKC Economics Department, at NewEconomicPerspectives.org

    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

    Q1: Is our so-called “national debt” a real debt, an interest-bearing burden that we must repay?

    A1: No, It lacks the two essential qualities of a real debt. It’s a “Debt In Name Only”, a “DINO” -

    1. A real debt is a serious burden. Our DINO is not now and never will be a serious burden for taxpayers.

    Our DINO is the total value of all issued and still maturing treasuries. The buyers of newly-issued treasuries pay for the redemption of mature treasuries. It’s equivalent to a simple bond rollover done every day by bond-owners. In every auction, more treasuries are demanded than are available from the supply of new issues. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed could even create an artificial demand for treasuries by buying them in the open market with a few keystrokes. Whoever calls our DINO a burden is either as deceived as most US voters or is indeed a very cruel deceiver.

    Our Treasury does not borrow money like a home-buyer getting a mortgage. It is rather a custodian of funds, like a bank accepting money offered for certificates of deposit. While a bank with too many bad loans can certainly have too many maturing CDs, our non-lending, fiat Treasury cannot have too many maturing bonds unless its deficit spending is causing harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the sole cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, don’t restrict infrastructure spending for the future! Regulate the banks!

    The Treasury auctions bonds only because Congress requires that the proceeds finance the annual budget deficit. This requirement, now a relic of the former gold standard regime, was suspended during World War II, followed by 35 years of strong economic growth without harmful inflation. Now, under our fiat currency regime, Congress can again, without “borrowing”, finance deficits out of thin air, the same way your corner bank financed your home mortgage.

    Crying that our DINO is unsustainable, Wall Street scammers have panicked the public and many ignorant journalists and politicians (both in Congress and in the White House). It’s a hoax meant to yield a fortune in commissions by privatizing Social Security and Medicare. And, bribing Congress into austerity, the Wall Street con artists are nursing a huge army of unemployed labor that prevents the middle class from bargaining for better wages. As our rotting infrastructure renders our industry incompetent, it is that growing army of the idle that will become unsustainable.

    2. A real debt must be repaid. Our DINO will never be repaid and should never be repaid.

    Only a federal budget surplus can reduce DINO. Since dropping the gold standard in1971, we have rarely had even a modest budget surplus. None is now in sight. To supply enough treasuries, the ONLY risk-free instrument used for trade collateral, insurance, pensions, bank reserves, etc., our Dino must continue to grow along with our economy. In fact, deflation and then depression will hit us hard unless big budget deficits replace the cash now flowing into China.

    Q2: Could savers make a “run” on Treasury bonds?

    A2: Yes, when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

    Q3. Could savers stop buying Treasury bonds?

    A3. Sure, when nobody needs risk-free interest for insurance, pensions, trade collateral, bank reserves, etc., etc.

    Q4: Could savers prefer foreign sovereign bonds?

    A4: Yes, indeed! So far, almost two thirds of the world’s reserve currencies are in US dollars and half of all US Treasury bonds are held by foreigners. But if China’s infrastructure (and so, its productivity) becomes better than ours, its sovereign bonds could become safer than ours. But that could happen only if US voters worry more about our DINO than they worry about our failing schools, falling bridges, leaking sewers, an aging power grid, etc., etc.

    3 AntwortenPoliticsvor 8 Jahren
  • You have to balance your budget. Why doesn't Congress have to balance its budget?

    If you could legally print dollars in your basement, why would you balance your budget?

    Our money tree only needs to balance full employment against inflation.

    Why can’t conservatives understand something so simple?

    7 AntwortenPoliticsvor 8 Jahren