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alstry (36.32)

Why Do We Pay Taxes?

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November 05, 2010 – Comments (2)

QE1 was supposed to be an "emergency" measure and temporary....

QE "light" was just a continuation.....

now QE2 is actually monetizing our DEFICT......the current spending of the government.....and we are told there will likely be a fleet of QEs going down the road....

since about half the budget is now deficit........about half of CURRENT spending of our government is simply the result of government printing........or loaning money to itself....

in the past, the government had to go out to third parties, like its citizens, foreign governments, or others, like taxpayers to fund its deficit....but now, it can simply borrow the money from itself......or just print it. 

Once a government can borrow from itself, it no longer needs to borrow from others like China or Japan.....as a matter of fact, in the not too distant future, the FED will own more U.S. debt than China and Japan combined!!!!!

If the government can monetize half its budget......why can't it monetize the whole thing? .....and if it can monetize the whole budget.....why should anyone pay taxes?

The reason no one asks this question is because, until yesterday, the issue was never in play.......but soon, expect more and more to question.....if the government can monetize its budget.......why should anyone pay taxes.......?

2 Comments – Post Your Own

#1) On November 05, 2010 at 11:44 AM, davejh23 (< 20) wrote:

I find it amazing that "double-dip" fears that spiked just months ago on dismal data are now essentially non-existant.  Bernanke claims to be a student of the Great Depression, but just look at foreign government's responses to the Fed's recent move...they're openly and harshly mocking us.  We are guaranteed a currency/trade war that will crush the global economy.  I'd say the odds of the Greatest Depression are now ~100%...the U.S. standard of living is on the decline and will never return...

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#2) On November 05, 2010 at 12:24 PM, alstry (36.32) wrote:

It is actually much more serious than just a depression.....

In the Last Great Depression.....America was a low debt and EXPORT based nation....so Bernanke's "theories" were built around a situation that doesn't exist today....a situation more relevant to modern day Japan.

By doing what we are doing now as a massive deficit and net importer.....we are shoving our dollars down everyone around the world's throats....

and now we are shoving, as Bill Gross calls them, SAMI dollars.....or Ponzi Dollars....or as more and more are beginning  to realize,....devaluing dollars simply being printed up.

Pretty soon, more and more will stand up and say we don't want your dollars for our stuff, rare earth metals, bananas, etc.......or we want a whole lot more of them than you are currently giving us.......and when that happens, we will have little to offer them in exchange.....

except forcibly "convincing" to take our dollars.....or our obsolete military equipment.

Do you think 34 warships are accompanying Obama's trip to India are there simply to give him security to visit a lights festival and a few local attractions?

Please....it is a show of force.......just like the 40 ships we sent to Costa Rica a few months ago and now parked in their port.  We are simply escalating the game of chicken right now.....you take our money or we will Saddamize you.....

In the mean time.....you will start to see more and more Americans raise the issue that I raised in this blog.....

simply, that if America no longer needs to go to third parties to fund its government spending.....why does anyone need to pay taxes anymore?

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