latewire.com ——- [slide 1] This box right here represents the yearly federal budget. We’re going to divide it up into 2 parts [slide2] the part paid for by tax dollars, [slide3] and the part paid for by everything else. For the purposes of this video, we’ll say about [slide 4] 2/3 of the budget is paid for with tax dollars, but you should know that in this year, 2009, taxes account for much less. [slide 5]Now we’re going to divide this up further and look at just the portion paid for by using money outside of taxes. [slide 6] On the left, we’ll put the part paid for by privately purchased treasury bonds. [slide 7] This will contribute to the infamous national debt, which is currently approaching $11.7 trillion dollars. [slide 8] The other part is paid for by printing money. This is done by an institution known as the federal reserve, also known as The Fed. The Federal Reserve is NOT officially part of the government. Theoretically, the reason for this is to make sure that the government cannot print money directly to pay its bills. The Fed is supposed to act independently and not print money unless it is in the interest of the economy. However, the end result of this is that the government gets all the printed money it asks for, regardless of the effect it may have on inflation and the economy. Whenever a government or central bank prints money, it causes inflation. Inflation is a classic double-edge sword. [slide 10] By making the currency worth less, people who owe …
CURRENCY COLLAPSE: How the US Government Is Destroying the Dollar
January 2, 2011
@mustang607 can we go back to a constitutional free market system? Hahahahaha !!!!
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?EZ – COM?casino’m?
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407buddy- Lockerung/?/-
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‘;?S- ?100yrs12- ?goldsave?/
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when you print money you debase and devaluate, depreciate our savings accounts because more money created inflation, the more dollars you have on the street the less they become valuable. only when something is scarce does it increase in value so less money printed means our dollars increase in value.
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@ananiasacts Glenn Beck is an idiot. Think for yourself, get the facts then walk the talk.
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Ananiasacts @?[]- – - – ?@ misesmedia- ?
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@joshmccraney720, what puzzles me is why we don’t tax the black market (by construction. ) It’s estimated to be between one tenth and one sixth of GDP. If it was taxed at 50% it would generate around a trillion dollars of new revenue for the federal government without affecting anyone who isn’t a criminal. It would also allow us to measure both the white and black markets far more accurately, solve the illegal immigrant problem at no cost, and take a big bite out of crime. It’s a no brainer.
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@latewire, I so disagree. The open market operations simply allow the fed to give bond investors more confidence that their investment is being actively protected. That, plus the overall size and breadth of our economy are the main reasons why we pay so much less than every other nation for our debt. If they were not allowed to do this then rates would be higher today because our bonds would be genuinely riskier investments. So I agree in that sense, but disagree that it is a bad thing.
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@ Ananiasactsð?R F?ERALF- res?ð- – ?
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@latewire, The only effect I can see it having on bond rates is to lower them. It can have a tiny effect on bond yields because they decide which ones they’ll buy and sell from a vast collection of bonds spanning 30 years and many different coupons. But even this is no different than all of the other bond trading that is going on. It lowers bond rates because it assures buyers that the fed has effective tools for controlling inflation, thus making our bonds a safer way to preserve wealth.
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@ananiasacts Regardless of why you think they’re buying them, it still has a huge effect on Bond rates. That was the topic of your original post. I’m not going to address the falsehoods of monetarism here. For that I’d recommend the “misesmedia” channel here on youtube.
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@ 407buddym- R- ?
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This is very misleading. For exle, treasuries are sold at auction, that’s what determines their yield. You make it sound like you government sets that value itself. You leave out the income from seigniorage, the non-tax revenue of the fed, lots of stuff. I think we citizens should be calling for a tax on the black market, that could generate around a trillion dollars per year of new income for the federal government without any additional tax on the people who report their income.
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@latewire Great point.
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Spineless Obama, like Bush, is a patsy, has no say, no power. Banks, the Fed, CIA, Aipac are the real owners, the rule makers and breakers, they will trash this country to protect their status quo of wealth and power. The Constitution was suspended on 9/11 and “legally” entrenched by the Patriot Act and the Military Commission Act. Perceived “troublemakers” will be rounded up with everyone else at the bottom of the pyramid, doomed into poverty and serfdom. Are you prepared for a fight
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@69Whitehawk true to an extent. without taxes means no schools, law enforcement, yada yada yada. to give exle, look at greece. tax evasion as become endemic, and the catastrophic ramifications are showing. yes i am well aware of other existing problems that have exacerbated the debt, but rest assure that lack of taxes contributed as well. somethin to think on. . .
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RD- – é- ChoueTarp/?Pop?
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2/3 paid for by taxes? LOL
Our taxes only pay for the interest on our current debt. Everything else is paid for by taking out new debt.
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