Wednesday, December 3, 2014

Happy Eighteenth!

Happy Eighteen Trillion Dollars of debt day America.  Eighteen Trillion Dollars works out to about $56,300 dollars for every man, woman and child in our country.  That equals about $153,000 per tax payer.

Here is another scary fact.  Ever since President Nixon severed the U.S. dollar from the gold standard and let it "float", our money is also simply a debt instrument.  Since paper money has no intrinsic value, using it to purchase a good or service is actually an I.O.U.  The transaction is not complete until we provide goods and services to the rest of the world as they attempt to spend (redeem) our money back with us.  So, as a practical matter, we are officially destitute.

It is a shame.  When President Kennedy was in office we had no significant debt.  Our money was sound.  President Johnson ran with the idea of deficit spending as a method rather than a temporary, necessary evil.  Johnson also initiated the idea of spending the money withheld by the Social Security program and replacing those moneys with Treasury Bonds (debt).  Our country went from financial strength to today's weakened state in a short fifty years.

The Federal Government will not face this problem.  They cannot.  No senator or congressman will run for office on a platform of cutting benefits and increasing debt payments.  They will drive this vehicle off the cliff at full throttle.  We must do it!  We must refuse their empty promises and their worthless handouts.  Of all the programs that they have foisted upon us, three are breaking the bank.  Social Security, Medicare and Medicaid together account for over twenty-five percent of the annual expenditures.  A forth liability is growing rapidly, the interest on the eighteen trillion.  If we shut those three down, the debt would stop growing.  If we stopped lining up to sign-up for their stupid gimmicks such as Obama Care, stopped angling for "rebates" (someone else's money), stopped looking for a free ride, we might just pull ourselves out of a dangerous spot.  Otherwise, the day will come when the rest of the world will refuse to take any more of our worthless promises (money).  On that day we will collectively see mind boggling inflation (devaluation) of our money and chaos will erupt.

So, the next time a bureaucrat offers you money, spit in his eye. 

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