All $$$ leads to taxes and banks
Does the following strike any CAPS players as strange:
WASHINGTON – Education Secretary Arne Duncan on Friday released nearly $4 billion to California, the first state to benefit from a special fund for states that was created by the economic stimulus law.
Revenues to state governments are evaporating. As a result, state governments need help from the federal governmennt. However, revenues to the Federal Government is evaporating. Based on March figures, the Federal Deficit is tracking at 4x last year's high level and the Fed Government can't pay its own bills.
Am I getting this right?????
The Federal Government is giving dollars it doesn't have to state governments who are giving dollars they don't have to teachers in substantial part to pay interest to banks on loans that were loaned to them with dollars the banks never had ????
If the loans go bad, the banks get free money from the taxpayer. If the state runs out of money, it raises taxes from the taxpayer. If the taxpayer loses his job or runs out of money, the taxpayer goes bankrupt, is thrown out on the streets and has nothing.
Is there something wrong with this picture?????
If you think about it, a dollar is simply a note, or a non interest bearing debt instrument, or an IOU. If the federal government can't pay its own bills, and the future looks even worse as far as incoming revenues, how can those IOUs be worth anything??????
I am not sure if this is inflation, deflation, or simply a collapse requring a total reset??? What are the options at this point now that we are simply handing almost all of our dollars to bankers and government????
The game requries the banks keep lending to keep the velocity of money flowing.....now that the banks have stopped lending.......money movement has stopped and most everything is shutting down as the people have sequentially less and less to spend and the bankers and government have more and more as a percentage of total money since almost all money now is going to pay bankers interest and government taxes.
Seriously, intelligent commentary is appreciated.....