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More on the Big Lie
In previous WUFYS posts I have explained that the US government has no “debt crisis,” since the US government has no debt.
The $15 trillion that the US government has sold in T-bills is not a debt. Instead, it is money that people have invested in the US government, in exactly the same way that people buy stock in a company.
In one perspective you could say that the US government “owes” this $15 trillion back to the people who gave $15 trillion by buying T-bills. However, the US government can always create limitless money to pay off anything. (No federal check ever bounced, or ever will.) Thus the US government has no debt.
If you can grasp this simple truth, then you will know more about economics that 99.9999% of the people out there. And you can dismiss 99.9999% of all articles written about the national economy.
Just today I explained this to a Mexican. (She speaks no English, so I explained it to her in Spanish.) She instantly grasped it, but her adult son could not grasp it, since he was born and raised in the USA. Being brainwashed, he thought I was an idiot.
John Thomas Financial is an independent broker on Wall Street. The firm’s Chief Market Economist, Michael Norman, admits that the US government has no debt. In a Russia Today article titled “US has no debt if you think about it,” Mr. Norman says,
“You only get into debt when you borrow someone else’s money, but the US government creates it own money. There is no need to borrow what you can create without limit. A nation that issues its own currency floats freely, and is not convertible to any sort of default or anything of that nature. It is just not applicable.”
Likewise I have previously explained that the US government has no “deficit crisis,” since the US government has no deficit. Not really.
The “deficit” is the difference between the money the government puts into the economy by spending, and the money the government sucks out of the economy by taxing.
However, the US government has no need or use for tax revenue, since US government creates its own money. It destroys tax revenue upon receipt (i.e. cancels out the revenue on the government’s ledger). The only purpose for federal taxes is to control the money supply (which is necessary), and to maintain the Big Lie.
The Big Lie is that US government finances are the same as personal finances – i.e. that an entity that can print limitless money is the same as an entity that cannot.
Almost everyone believes the Big Lie. The only people who do not believe it are those who benefit from it and spread it, namely politicians, top-level bankers, and the corporate media (which is ultimately owned by the bankers). They maintain the Big Lie so that you grovel before them, while you bicker about things that do not even exist, such as the “national debt,” and the “budget deficit.”
From this Big Lie come myriad other lies...
THE “BALANCED BUDGET” LIE
Politicians, top-level bankers, and the corporate media say that taxes on the middle and lower classes must be increased, and spending on social programs must be reduced, in order to have a “balanced budget.”
The masses believe this “balanced budget” lie without question. Like the Jewish holo-hoax, they accept it as an “obvious fact,” since the masses falsely think an entity that can create limitless money (e.g. the US government) is the same as an entity that cannot (e.g. you and me).
A “balanced budget” means that the government takes as much money out of the economy via taxation as the government puts into it via spending. If that ever happened, then there would be no money in the US economy. Plus, the USA has a $50 billion negative trade balance per month (according to the US Census Bureau Freign Trade Division). Therefore a balanced budget would cause the economy to lose $50 billion every month. No money means no economy. Period.
Thus, the term “balanced budget” is meaningless at the federal level.
It is not meaningless when applied to you as an individual, since your personal expenses must not exceed your income. As an individual, you need a balanced budget. However, if you could print limitless money in your house or apartment (like the US government can), then the term “balanced budget” would not apply to you.
State, county, and city governments must balance their budgets. They have deficits, and they are being crushed by debt, since they cannot create money. The US government is different. It can create money, and does so by spending, and by accounting tricks (as I have explained in previous posts).
Euro-zone nations also have crushing debts, since they do not create their own money. Their debt crisis is real. Their solution, of course, is to dump the euro and return to their own currencies. (Wall Street economist Michael Norman agrees with this in the article I cited above.)
Unfortunately the European masses have been conditioned to believe their own Big Lie (“We must support the euro at all costs!”) just as the American masses have been conditioned to believe the American Big Lie (“We must fix the debt crisis!”).
Therefore, when you see an article that mentions the USA’s “national deficit,” or the “national debt,” or the “need for a balanced budget," it will usually be deceptive, and designed to maintain the Big Lie.
Since the US government can create as much money as needed for any purpose, the only reason for cutting social programs is so the bankers, the politicians, and the One Percent can increase their godhood over the peasants.
One CNN article claims that if the Medicare eligibility age were raised from 65 to 67, then the US government would “save” $125 billion by 2021. The article also claims that if the federal income tax were raised by one percent on ordinary people, then the US government would “save” $208 billion.
Again, total bullshit. For the US government, which can create limitless money, the term “save” is meaningless. “Saving” $333 billion would mean sucking $333 billion out of the economy – i.e. out of your pocket.
This theft from your pocket is exactly what the bankers, politicians, and One Percent want. The US government has no need and no use for this money, since it can create limitless money. If the government wanted to, it could kick-start the US economy out of the depression by handing a every American a check for, say, $20,000.
Politicians, central bankers, and the One Percent maintain the Big Lie because they enjoy watching you squirm.
Corporate media employees maintain the Big Lie because if they don’t, then they will be unemployed along with everyone else.
The average person maintains the Big Lie because he has not only been brainwashed; he thinks he is smarter than evereyone else. Hence he angrily defends the Big Lie that is impoverishing him, just as Europeans defend their own Big Lie (the need for the euro currency).
Incidentally, you will find the same Big Lie in every nation that issues its own currency. In all of them, the bankers, the politicians, and the corporate media bemoan the "national debt," the "budget deficit," and the "need for a balanced budget."
Euro-zone nations that do not issue their own currency have a different Big Lie.
Both Big Lies amount to the same thing: the impoverished masses must be further crushed by austerity.