Uncivil Civil War 2
In the previous blog we learned that money was simply:
a representation of a unit of production recognized by the soverign voluntarily exchanged between parties for goods and services.
MONEY MUST BE BACKED BY PRODUCTION OR THE REASONABLE EXPECTATION OF PRODUCTION IN ORDER TO HAVE VALUE.
We saw what happened to housing when banks started lending trillions against houses and other commercial real estate that wasn't backed by real value or a reasonable expectation for the borrower to pay back.....THANKS BENNY, sure subprime was contained.......
When government issues money, it too must be backed by production or the reasonable expectation of production, otherwise it is illusory as there is no consideration backing the currency and eventually the money becomes worthless as people/the market reveals the nature of the fraud.
HERE IS WHERE THE FUN PART COMES:
Right now, America is running a deficit backed by outright printing and nothing else...we call this QE1 and QE2.....and it is not just any amount, it is a massive $1.6 trillion dollars per year...enough to pay 32,000,000 American families $50,000.00 per year...which is coincidentely about the same number of people who work directly for government or receive contracts/grants from government.
Since this money is printed out of thin air.....AND NOT GENERATED FROM TAXES.....it becomes questionable to determine who is entitled to it.....and how much?
Pretty soon, EVERYBODY wants it....military leaders want it to bomb babies already born......planned parenthood execs want it to kill babies not yet born (notice how I hit both sides of the aisle)...both want the money that doesn't exist to pay themselves and further their agenda.
However, neither is entitled to it.
In the Great Depression, we VOLUNTEERED/DONATED FREE food to the hungry....who stood in line for food. Today, government counterfeits money it doesn't have, and banks issuing the food stamps and stores SELLING the goods are getting rich on that money we can't afford to pay out.
And we can only keep counterfeiting until the world forces us to stop by no longer accepting our currency for trade.
IMF: US 'lacks credibility' on debt...
IT WILL BE INTERESTING TO SEE HOW BOTH SIDES FIGHT OVER A DEBT CEILING THAT OUR ECONOMY HAS BECOME DEPENDENT ON TO FUNCTION......get ready for what could be a historic fight.