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You are confusing a couple of different things. Raising taxes takes dollars away from the private sector that they could have spent in the private sector. So in that respect, it is decreasing the amount of good or services that people or businesses in the private sector can buy or invest in.
I am not confusing anything. You said printing money reduces buying power and then implied anti-printing increases buying power.
Quote:
Raising taxes doesn't necessarily do anything to the value of the dollar. Dollars aren't being created or destroyed through taxation, they are simply being reallocated by the government. Like any other item of value, when there is a lot of something, it is worth less. If the dollar is worth less, it takes more dollars to buy something.
Reallocated? Money is government debt. Do you understand that Federal Reserve Notes means the Reserve has Treasury Notes backing it? Do you realize that is an IOU, aka debt. The government is reallocating its debt?
Its a state money system of IOUs. When government taxes it cancels its debts which cancels money. This is not a market money system.
I haven't heard a cognitive plan from either political party. Republicans say cut, but won't say where or how. Even the changes Ryan would have made to medicare wouldn't have cut enough from the deficit. Gut social security also? 70% of the people oppose those changes, but everyone supports cutting defense, and Republicans won't do that.
So here we are, damned if we do, and damned if we don't. Liberal Democrats won't touch entitlements, Republicans won't touch defense. Can't tax your way out of the hole, and the voters won't let you cut two of the biggest three programs in a significant way.
Its why I voted for Gary Johnson, a pox on both of your houses.
Absolutely spot on. Neither party has been specific about cuts. Bowels-Simpson is the closest thing and anticipates reducing the deficit by $80 Billion each year.
I am not confusing anything. You said printing money reduces buying power and then implied anti-printing increases buying power.
Reallocated? Money is government debt. Do you understand that Federal Reserve Notes means the Reserve has Treasury Notes backing it? Do you realize that is an IOU, aka debt. The government is reallocating its debt?
Its a state money system of IOUs. When government taxes it cancels its debts which cancels money. This is not a market money system.
Of course printing money reduces buying power. I learned that in high school econ and then again in Macro and Micro econ. Why do you think a coke costs a dollar today when it cost a nickel 70 years ago? It's because there is inflation that occurs on a continuous basis that decreases the buying power of every unit of money.
All government taxes are not canceling out debt. The only way that would be true is if 100% of taxes went to debt service. All governments, from cities to the federal government, have a debt service schedule. Some tax dollars are allocated to that where as other tax dollars are reallocated into various services and programs. You are also not taking into consideration that while the government pays off one old debt, it is taking out new debt.
Wasteful spending? The NAACP and LULAC (League of United Latin American Citizens) don't think Medicare Advantage is wasteful. They think it's vitally necessary for many low-income elderly Blacks and Latinos.
NAACP: "MA plans — private health plan options that provide coverage to 8.3 million Medicare beneficiaries — disproportionately provide coverage to low-income and racial and ethnic minority beneficiaries. Specifically, 40 percent of African Americans without Medicaid or employer coverage rely on comprehensive health insurance coverage provided by MA plans. By providing more comprehensive benefits and lower cost-sharing than traditional Medicare, MA plans help racial and ethnic minority populations gain access to health care services that are critical to their long-term health and well-being."
LULAC: "Medicare Advantage is vital to the well-being of Hispanic Medicare beneficiaries. According to a 2005 study by Ken Thorpe, Ph.D., of Emory University, Hispanics rely disproportionately on the Medicare Advantage program....We are concerned that additional cuts in funding for Medicare Advantage will threaten access to comprehensive benefits, result in higher out-of-pocket health care costs, and create financial barriers to care that will be particularly harmful for Hispanic seniors."
So... Obama and the Democrats' intention was to redistribute low-income elderly Blacks' and Latinos' health care to others they consider more worthy. Interesting...
Obama and the Democrats believed elderly Blacks and Latinos and their families and loved ones will vote to decrease their own access to health care. And guess what? They DID. So no more whining about reduced access to health care from Blacks and Latinos. It's EXACTLY what they voted for.
What the hell are you talking about? Do you understand what "wasteful" spending means? It means money that doesn't need to be spent. That's not the same as cutting services.
Fact: We overpaid private insurance companies to administer MA.
Fact: Correcting that overpayment = cutting wasteful spending.
Fact: Again... OVERpaid... meaning paid more than we should have, not cutting services to save a buck.
What the hell are you talking about? Do you understand what "wasteful" spending means? It means money that doesn't need to be spent. That's not the same as cutting services.
Fact: We overpaid private insurance companies to administer MA.
Fact: Correcting that overpayment = cutting wasteful spending.
So why did they eliminate the benefits of the program instead of just cutting the wasteful spending? For example, hearing aids and eye exams/eyeglasses were covered by MA. Medicare doesn't cover those. Elderly Blacks and Latinos (and everyone else who was covered by an MA plan) will no longer have access to hearing aids and/or eye exams/eyeglasses unless they pay out of their own pockets.
Of course, this whole "budget" debate is a waste of time and a distraction. Why?
The Congress has been operating "insane" since 1933.
?
That is the year Congress repudiated their promises to redeem their IOUs, aka "dollar bills".
! What?
A dollar (unit) is a silver coin, pursuant to the Coinage Act of 1792.
However, silver was demonetized in the Coinage Act of 1873, so we have to use the 1 oz gold coin as reference ($20) - the double eagle.
Pursuant to Title 12 USC sec. 411, a "dollar bill" is a promise to pay face value in gold coin.
Except that promise was repudiated in House Joint Resolution 192, in June 1933.
(hmmm) Legal Tender Status
" Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."
... Okay - so the notes have no value (worthless). What else?
...
Senate Report 93-549
War and Emergency Powers Acts
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years (as of the report 1933-1973), freedoms and governmental procedures guaranteed by the Constitution have, in varying degrees, been abridged by laws brought into force by states of national emergency."
...
Can you guess why the government had to declare an emergency in 1933, the same year that their IOUs became worthless?
They're bankrupt. D'oh.
... How does Congress operate without lawful money, as defined by the U.S. Constitution, in Art. 1, Sec. 8, and Sec. 10?
Ans: Title 12 USC Sec. 411 defines the U.S. as an obligated party on those notes ("dollar bills"). Under the Law of Notes, and obligated party must accept their OWN NOTE in lieu of lawful money. What about the American people?
They're liable parties, via their enrollment into FICA.
(!)
FICA / Social Security is NOT insurance, there's no "trust fund", and since there's no lawful money, no one paid a "dime" into it since there's no lawful money since 1933 - the start of the emergency. (I do not BELIEVE you - harrumph!)
"One of the most enduring myths of Social Security is that a worker has a legal right to his Social Security benefits. Many workers assume that, if they pay Social Security taxes into the system, they have some sort of legal guarantee to the system's benefits. The truth is exactly the opposite. It has long been law that there is no legal right to Social Security. In two important cases, Helvering v. Davis and Flemming v. Nestor, the U.S. Supreme Court ruled that Social Security taxes are simply taxes and convey no property or contractual rights to Social Security benefits."
...
Get it? FICA is just a tax, and not insurance for you.
So if it is a "Tax and Bribe" scam, why do participants have to accept worthless notes as "legal tender"? Ans: It's in the title : Federal Insurance CONTRIBUTION Act. (Remember, it's not insurance for YOU.)
....................
CONTRIBUTION - ... The share of a loss payable by an insurer when contracts with two or more insurers cover the same loss... The sharing of loss or payment among several...
--- Black's Law Dictionary, Sixth Ed., p. 328
....................
Every enumerated "contributor" under FICA is equally liable for the public debt, making "dollar bills" into legal tender. Ergo, the only thing in the "Trust Fund" is your own liability to pay yourself and everyone else who makes a claim on the bankrupted government.
That's how "all the goods and services" BACK those notes emitted by Congress.
Feeling a bit nauseous?
It gets better (worse).
Remember that pesky national debt?
Pursuant to the Coinage Act of 1792, 16+ trillion dollars in public debt computes to an obligation to pay over 800 billion ounces of gold, stamped into coin.
□ Problem #1 : Fort Knox depository holds (allegedly) 147.4 million ounces of gold bullion ($2.9 B)
□ Problem #2 : Worldwide supply is estimated at 5.3 billion ounces. ($106 B)
□ Problem #3 : World wide mining (2011) : 88 million oz production ($1.7 B) At that rate, for Americans to pay off the national debt, currently over 16 T dollars, would require them to “acquire” all the world’s gold for the next 9,500 years - IF - the debt and interest were frozen RIGHT NOW.
□ Problem #4 : Clause 4, Amendment 14, USCON, forbids challenging the validity of the public debt - even when it is impossible to repay. Until we repeal that clause, Congress cannot act.
....
Did Congress ever BORROW money? Or was it given an extension of credit? At usury?
Hmmmm....
....
Starting to feel your eyes glaze over?
And all this is in plain sight - in any county courthouse law library - if anyone would bother to read law. Congress certainly doesn't read the laws it enacts - we know that for a fact.
Recapping - there's no lawful money, the debt can never be repaid, it cannot be legally challenged, you're a liable party by your "voluntary" enrollment into Social Security, and Congress borrows MORE each year than it pays in interest on the debt. That’s what Bernie Madoff went to prison for doing in the private sector. No “investor” will ever see his principal returned. (2011 : $1.56 trillion deficit; $208.7 billion for interest payments) - and what DID Congress borrow, if not lawful money? (Do not look behind the curtain, LITTLE GIRL, we are the GREAT AND POWERFUL ... )
There's not enough gold bullion in the world to go back to a "Gold Standard" (less than one ounce per capita). We cannot continue "borrowing" debt-notes and paying interest with "borrowed" debt-notes. And we cannot just stand still.
Yup, we fell off the "Fiscal cliff" in 1933 - and we're now approaching "SPLAT."
If you're a creditor, whose accounts receivable are denominated in "dollar bills," they're worth NOTHING.
If you're a debtor, whose property is pledged as collateral on the impossible public debt, you're [expletive deleted].
I think that qualifies for calling the situation INSANE.
Of course printing money reduces buying power. I learned that in high school econ and then again in Macro and Micro econ.
Hmm, I learned my Econ in college and then continued to read up on it for 20 years .
Quote:
Why do you think a coke costs a dollar today when it cost a nickel 70 years ago? It's because there is inflation that occurs on a continuous basis that decreases the buying power of every unit of money.
That isn't reducing buying power. Its diluting the existing float of the credit side of the account in the absence of addressing the resulting supply. At that point there is no change in the aggregate buying power. However since we have a large debtor class any shrinking float will shift buying power to creditors( who make nothing). I sort of thought the trillion dollar bailouts were enough shifting of buying power to the creditors. Capital destruction will certainly reduce buying power in the aggregate and then per unit of real purchasing power.
Now to address the debt side of the account say 100 unit of widgets = 100 units of existing money float and 1 unit of money adds 1 widget. Aggregate buying power has gone up with no dilution. 101 =101.
What is the point of the money supply? To have its unit rise in value or to reduce transaction costs? I know where I stand on it, and its the latter.
I realize we are so used to fractional reserve lending meets land ponzi schemes that does dilute the existing float, and that few people can recognize what a money system was supposed to be.
Quote:
All government taxes are not canceling out debt. The only way that would be true is if 100% of taxes went to debt service. All governments, from cities to the federal government, have a debt service schedule. Some tax dollars are allocated to that where as other tax dollars are reallocated into various services and programs. You are also not taking into consideration that while the government pays off one old debt, it is taking out new debt.
All Federal taxes cancel debt. There is no debt service. The Federal Government creates money when it goes into debt.
Of course, this whole "budget" debate is a waste of time and a distraction. Why?
The Congress has been operating "insane" since 1933.
?
That is the year Congress repudiated their promises to redeem their IOUs, aka "dollar bills".
! What?
A dollar (unit) is a silver coin, pursuant to the Coinage Act of 1792.
However, silver was demonetized in the Coinage Act of 1873, so we have to use the 1 oz gold coin as reference ($20) - the double eagle.
Pursuant to Title 12 USC sec. 411, a "dollar bill" is a promise to pay face value in gold coin.
Except that promise was repudiated in House Joint Resolution 192, in June 1933.
(hmmm) Legal Tender Status
" Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."
... Okay - so the notes have no value (worthless). What else?
...
Senate Report 93-549
War and Emergency Powers Acts
"A majority of the people of the United States have lived all of their lives under emergency rule. For 40 years (as of the report 1933-1973), freedoms and governmental procedures guaranteed by the Constitution have, in varying degrees, been abridged by laws brought into force by states of national emergency."
...
Can you guess why the government had to declare an emergency in 1933, the same year that their IOUs became worthless?
They're bankrupt. D'oh.
... How does Congress operate without lawful money, as defined by the U.S. Constitution, in Art. 1, Sec. 8, and Sec. 10?
Ans: Title 12 USC Sec. 411 defines the U.S. as an obligated party on those notes ("dollar bills"). Under the Law of Notes, and obligated party must accept their OWN NOTE in lieu of lawful money. What about the American people?
They're liable parties, via their enrollment into FICA.
(!)
FICA / Social Security is NOT insurance, there's no "trust fund", and since there's no lawful money, no one paid a "dime" into it since there's no lawful money since 1933 - the start of the emergency. (I do not BELIEVE you - harrumph!)
"One of the most enduring myths of Social Security is that a worker has a legal right to his Social Security benefits. Many workers assume that, if they pay Social Security taxes into the system, they have some sort of legal guarantee to the system's benefits. The truth is exactly the opposite. It has long been law that there is no legal right to Social Security. In two important cases, Helvering v. Davis and Flemming v. Nestor, the U.S. Supreme Court ruled that Social Security taxes are simply taxes and convey no property or contractual rights to Social Security benefits."
...
Get it? FICA is just a tax, and not insurance for you.
So if it is a "Tax and Bribe" scam, why do participants have to accept worthless notes as "legal tender"? Ans: It's in the title : Federal Insurance CONTRIBUTION Act. (Remember, it's not insurance for YOU.)
....................
CONTRIBUTION - ... The share of a loss payable by an insurer when contracts with two or more insurers cover the same loss... The sharing of loss or payment among several...
--- Black's Law Dictionary, Sixth Ed., p. 328
....................
Every enumerated "contributor" under FICA is equally liable for the public debt, making "dollar bills" into legal tender. Ergo, the only thing in the "Trust Fund" is your own liability to pay yourself and everyone else who makes a claim on the bankrupted government.
That's how "all the goods and services" BACK those notes emitted by Congress.
Feeling a bit nauseous?
It gets better (worse).
Remember that pesky national debt?
Pursuant to the Coinage Act of 1792, 16+ trillion dollars in public debt computes to an obligation to pay over 800 billion ounces of gold, stamped into coin.
□ Problem #1 : Fort Knox depository holds (allegedly) 147.4 million ounces of gold bullion ($2.9 B)
□ Problem #2 : Worldwide supply is estimated at 5.3 billion ounces. ($106 B)
□ Problem #3 : World wide mining (2011) : 88 million oz production ($1.7 B) At that rate, for Americans to pay off the national debt, currently over 16 T dollars, would require them to “acquire” all the world’s gold for the next 9,500 years - IF - the debt and interest were frozen RIGHT NOW.
□ Problem #4 : Clause 4, Amendment 14, USCON, forbids challenging the validity of the public debt - even when it is impossible to repay. Until we repeal that clause, Congress cannot act.
....
Did Congress ever BORROW money? Or was it given an extension of credit? At usury?
Hmmmm....
....
Starting to feel your eyes glaze over?
And all this is in plain sight - in any county courthouse law library - if anyone would bother to read law. Congress certainly doesn't read the laws it enacts - we know that for a fact.
Recapping - there's no lawful money, the debt can never be repaid, it cannot be legally challenged, you're a liable party by your "voluntary" enrollment into Social Security, and Congress borrows MORE each year than it pays in interest on the debt. That’s what Bernie Madoff went to prison for doing in the private sector. No “investor” will ever see his principal returned. (2011 : $1.56 trillion deficit; $208.7 billion for interest payments) - and what DID Congress borrow, if not lawful money? (Do not look behind the curtain, LITTLE GIRL, we are the GREAT AND POWERFUL ... )
There's not enough gold bullion in the world to go back to a "Gold Standard" (less than one ounce per capita). We cannot continue "borrowing" debt-notes and paying interest with "borrowed" debt-notes. And we cannot just stand still.
Yup, we fell off the "Fiscal cliff" in 1933 - and we're now approaching "SPLAT."
If you're a creditor, whose accounts receivable are denominated in "dollar bills," they're worth NOTHING.
If you're a debtor, whose property is pledged as collateral on the impossible public debt, you're [expletive deleted].
I think that qualifies for calling the situation INSANE.
What do you think?
We would have had our Constitution rewritten in German and Japanese. As much as I would love for the government to not have the power, life sucks. However what is worse is people think they don't have this power.
Hmm, I learned my Econ in college and then continued to read up on it for 20 years .
All Federal taxes cancel debt. There is no debt service. The Federal Government creates money when it goes into debt.
Micro and Macro are college course, not that college means all that much beyond having a piece of paper that says you successfully traverse left-wing indoctrination camp.
What you are saying about all taxes canceling debt makes no sense. The government has to allocate a certain amount of its tax revenue to servicing its debt. Bonds have to be paid with real money eventually. The whole controversy about Medicaid, Medicare and Social Security is that it could end up eating up almost all of the tax revenues and expenditures.
It's true that the government could pay its debt by printing more money, but that will decrease the value of the money and would result in countries having to pay higher rates on bonds. Countries like Italy did this all the time before they joined the Euro and they had far less attractive borrowing options than did countries like Germany.
How exactly would tax dollars spent on EBT cards cancel debt?
The Federal Government creates money when it goes into debt.
Not factual.
Congress has the power to coin money (stamp bullion) and borrow money.
If Congress had the power to create money, why would it need the power to borrow money?
(See Art. 1, Sec. 8, USCON)
There has been no "money" in circulation since 1933.
MONEY - In usual and ordinary acceptation it means coins and paper currency used as a circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W. 2d 74, 79, 81.
Black's Law Dictionary, Sixth Ed. p. 1005
Money does not embrace notes (as in "Federal Reserve Notes" aka "dollar bills").
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