Tag Archives: Trillion

Biden’s Billingsgate

Who was that masked man? Why, he’s grown stranger…

President Biden is proposing to exceed the THIRTY TRILLION dollar debt level.  What he suggests is not only partisan and disingenuous, but includes multiple effects that restrict and undercut capitalism.  If he ever understood the relationship between debt, productive surplus and growth, he has forgotten it… along with Constitutional provisions and any semblance of American exceptionalism: down the memory hole.

Under his and other socialists’ direction, American will be exceptional again:  among all industrialized nations we will lead the world in our concerted, legislated efforts to destroy our hard-won success and relinquish our sovereignty.  Biden wants to “go big” – biggest fool, perhaps.

The only system that can both destroy debt and increase freedom, is free-enterprise capitalism.  That is, NOT monopoly capitalism OR globalism, both of which concentrate money and power OUT of the hands of free citizens and OUT of the hands of their elected representatives – although not out of their pockets in many cases.  Those must be stopped before it’s too late.  Some serious trust-busting is essential to restoring America.

Practically, a clear course-correction would be to limit the level of corporate net-worths or levels of gross revenues that may donate ANY money to candidates or PAC’s – ANY money.  Perhaps companies with $50 millions in assets or $25 millions in revenue or LESS, may donate, not larger.  Also, companies that have government or military contracts may not donate.  Then trust-busting could proceed.

Already we’ve experienced reduction in job and business growth – returning to pre-Covid levels – because excessive, socialist, “rescue” or “stimulous” payments are keeping people from returning to work!  Work… where guided labor produces things, including taxes.  We know where idiots… umm, ignore that… “progressives” think economic growth comes from: unemployment checks.  Nancy Pelosi said so.  Only as employment increases will freedom, independence and tax revenues increase.

People earning their own livings strengthen both responsibility and financial freedom.  Having more taxpayers increases political freedom.  2020 has shown that weakening election laws weakens political freedom, and it disenfranchises citizens from our most fundamental and hard-won civil rights.  Adding greater responsibility to the exercise of the franchise will clarify honesty in elections – a fundament of the American promise.

Back to what Biden has forgotten… if he ever knew it.  Debt is a superb tool for growth, but not for maintenance – period.

Imagine a factory producing, say, refrigerators.  Its lines are operating, workers are working and every unit that comes off the line is sold within days.  In fact, there is a shortage of refrigerators; people are forced to devise meals for their families without foods that need refrigeration.  People are denied good nutrition for lack of a high-enough rate of refrigerator production.  Even if the government passed a law requiring more refrigerators to be made, only so many can be.

To upgrade the factory and machinery to produce a third more – a 33% increase – will cost $100 Million.  Because the refrigerator company has made a profit over the past 15 years, of $30 Million after all expenses, cost of goods sold and payroll… and taxes, it is able to borrow, or gain a debt of $70 Million.  They’ll be able to make a productive surplus of not $3 million, but $4 million per year at 133% of current production, since all costs won’t increase proportionately.  Each refrigerator will cost a little less to produce with the new machinery and facility improvements.  The $70 Million loan, combined with investment out of increased operating profits, will be paid back with interest to the lender, in less than 20 years.

The earning of profits – creation of productive surplus – enables “Refrigerators, Inc.” to become more productive and efficient, able to modernize, hire trainees who can become highly paid refrigerator builders, and pay taxes to support our civic institutions and even donate money to charitable causes.  Productive surplus also enables the company to destroy debt – make it disappear – while increasing production, the only purpose of investment.  That’s it.  It’s NOT an investment to provide living expenses for people who do not work enough to support themselves or their families; it’s an emergency… it’s charity, not a way of life.

Meanwhile, everyone who wants a refrigerator can buy one – or, contrary to socialist dogma – go to work to earn enough to buy one.

Capitalism is the only process that can destroy debt or, in fact, make investments at all.  All other bills incurred by a society that is complex, are paid, or financed, by the productive surplus of profitable, capitalist enterprises.  All of government: schools, police fire departments, hospitals, military, public works… everything, is paid for from tax revenues that derive only from productive surplus in a profit-making economy.

The growing tragedy – growing weakness – is our habit of borrowing for current expenses from generations into the future, now to the tune of $28 Trillion.  About one-third of our annual federal “budget” is borrowed, not paid from current revenues.  This part of economics Joe Biden has not forgotten, even embraced: the lie of modern politics.

For a long time the U. S. borrowed real money… from banks, individuals and even other countries.  The Treasury sold bonds: saving bonds, Treasury notes (“Treasuries”) of different maturities and yields.  Investors used real money to “invest” in U. S. debt – one step removed from investing in future productive surplus, itself.  This was bad enough; we lived beyond our means but we could afford the interest on those debts, not so much affording repayment of the loan principals.

Unfortunately we have worn out our welcome among real investors.  Now we “borrow” from the Federal Reserve. 

(See: http://www.prudenceleadbetter.com/2020/09/27/knife-edge-election/)

The “FED” is a private bank consortium that can legally “lend” us money they do not have – $Trillions of it.  So, they lend us “air” and we pretend it’s money and pay interest on it.  Oddly, the Federal Reserve is also granted power to set interest rates, which for a long time have been near 1%, God bless their charitable hearts.  What will we do when they decide the rate should be 3%?  On $10 Trillion?  That’s $300 Billion in real money.  That’s a lot of Meals on Wheels.

Wait a minute… wait a minute.  Did I say, “$10 Trillion?”  I meant $30 Trillion, if we fulfill Biden’s plans.  Why, that would be $900 Billion… a YEAR… close to a $Trillion, itself – just interest!  That’s a lot of everything, including our own defense.  We literally cannot afford more multi-$Trillion spending plans; they are actually taxing plans. 

Many in government believe these “air-debts” never have to be paid back!  “We owe them to ourselves,” they think.  Ooookaaaay… aren’t the UFO people going to usher in a new era of no worries?  Oh, absolutely.  And, Joe Biden is going to unite the country, end racism and borrow us into prosperity.  And equity.

Innocence, Debauchery, and the American Dream

America suffers in the 21st century not from a loss of innocence, but from a loss of discrimination… a loss of judgment. Mankind has never lacked for debauchery nor for ways to debauch nearly every civilized function, from work, construction and development to education, medicine, churches and religion. Everything “we” have discovered or invented, we seem to have figured out how to besmirch and cheapen… like government.

Government, at least since Saul fell on his sword and bequeathed kingship to David, however inadvertently, has been occasionally a good invention, often completely inimical to human growth and perfection. Okay, okay, humans are perfected only in the rarest of circumstances, but, still, government is mostly inimical. In the long sweep of history, despite themselves, governments have brought a semblance of order, enabled scientific advances, established widespread education – some of it good – and provided measures of safety and peace within which individuals can seek happiness, or perfection, or both.
The last we call constitutional republicanism which stands out among the dozens of forms of tyranny still in use. Nevertheless, despite its promise, this form of self-governance has not been immune to the diabolical inventiveness of the forces of debauchery, of which there is space enough to discuss only a few.

Money is big in the debauchery field, as it is in the politician field, making it frequently difficult to discern between them. There never is enough money in the politician field, particularly where it intersects with socialist whims. Money, money, money means taxes, taxes, taxes and from time to time the working people object to taxation and politicians, who have the clarity of vision denied to workers, can perceive – if not create – hordes of dependents for whom that tax money is so sorely needed. That some dependents are billionaires is of little importance in the grand scheme of dependency. You’ve got your troubles, I’ve got mine.

So if taxation can’t be trusted to produce money fast enough, it becomes increasingly crucial that ways to expand the income of government be devised and, politicians having been elected and installed for their unique efficiencies, recognize that there is no point to re-inventing the wheel, as it were, in the matters of government income, so turn to the financial successes of debauchery for new ideas. Humans have left no stone unturned in the search for ways to cheat others out of their hard-earned money and one of the neatest tricks is the infamous “Ponzi Scheme.” It is easily explained:

A Ponzi scheme is an investment fraud where clients are promised
a large profit at little to no risk. Companies that engage in a Ponzi
scheme focus all of their energy into attracting new clients to make
investments. This new income is used to pay original investors their
returns, marked as a profit from a legitimate transaction. Ponzi
schemes rely on a constant flow of new investments to continue to
provide returns to older investors. When this flow runs out,
the… scheme… falls… apart.
[From “Investopedia”]

When the government, itself – who convicted Ponzi for fraud in 1920 – follows Ponzi’s formula, it takes a longer view and fewer dollars from each “investor,” and calls it “Social Security.” No slouches in the debauchery of public trust, politicians are able to compel workers to “invest” by force of police power, and then restrict the “returns” to only so many dollars per month and only after leaving the “investment” fallow for decades. That way the originators of the fraud will have passed on before the scope of the trick is figured out by the “investors.” “Invested” funds are then used to get future “investors” to vote for future perpetrators.

Prudence would suggest that “investors” should contemplate the consequences of having personally (actually) invested 15% of their pay over their entire working career. Upon retirement they would have had a huge financial asset and they wouldn’t be dependent on government to dribble back their own money! Of course, empowering citizens to live WITHOUT government is as anti-socialist as it could be and virtually never allowed even lip-service.

We need to give politicians the power to make life, health and death decisions for us.

Social Security really took off after World War II, as payrolls grew and pay rates along with them. The river of money was “re-invested” in all sorts of vital, crucial, crisis-averting expenditures that any sane and humane investor would endorse… had he or she known of them. After 1968 especially, the number of non-citizens who arrived on our shores seeking the “American Dream” exploded, and the means to support their “disabled, disadvantaged” selves derived from the “lockbox” of Social Security cash. Naturally, thanks to Ted Kennedy’s (the lyin’ of the Senate) legislation (Hart-Cellar Act), the colors and origins of immigrants are more important than the needs of the United States, and their relatives became more important than immigrants who can actually contribute to the strength of the nation. Many had/have no marketable skills or are “disabled” and “qualify” for SSDI or SSI support derived from – you guessed it – the “investments” of those canny worker-investors who are so proud of their own district’s Representative and state’s two Senators… oh, yes.

Unexpectedly, the Social “Security” lockbox tends to empty more quickly than promised. More money is needed! What to do? What to do without “raising taxes,” of course? There must be a form of debauchery… uhmm, we mean, outright mendacity and fraud… well, not that, of course, but some kind of “wool” that can be pulled over enough people’s eyes… naw, that’s just an old political joke, ha – ha – ha. There must be a form of courageous legislative governance that can find “new” revenue to meet the nation’s vital, crucial, crisis-averting expenditures. Aha! Loans!

Fortunately, globalist bankers had finally convinced Congress to approve the creation of a means to provide constant DEBT to the federal government. Now, if you’re one of those worker-investors we were talking about, you’re asking yourself: “Who in Hell would want a supply of debt?” (And you’d be right, but it’s a different topic.) “Everyone wants to get OUT of debt,” you’d say to yourself, being right a second time, “and anyone trying to get more debt should have his head examined!” (Or, his ledgers… again, right!)

Growing governments while controlling countries is a long-term plan. The international socialists have been at it for a long, long time. The “income” tax was instituted by amendment in 1913. This provided a large enough river of funds to enable the government to “help” itself and more and more people. Interestingly and, it certainly must be coincidentally, the Federal Reserve Act – a 20-year project of the largest banks – was passed at the end of… well, ha!… 1913! Both long-term efforts needed a global statist like Woodrow Wilson to be president in order to come to fruition.

The only way to quietly undermine the nationalism and freedom of the United States was to plant the seeds of debt and a private bank that controls the nation’s money supply is the best tool to do so. The “Fed,” as it’s called, makes economic policy as it sees fit. The “governors” don’t take advice from elected representatives, most of whom are happy to not be responsible for too awfully much. Whenever the Chairman of the Federal Reserve testifies in Congress it’s to tell Congress how things are going to be and not to ask the people’s representatives how things should be. The “Fed” is about as “federal” as Federal Express.

So what about how a central bank can control a nation’s economy? Why would any Congress vote for that? Well for the first 20 years or so the new “Fed” was practicing frog boiling, and the financial waters were just pleasantly warm… until the crash of 1929 and the attempts by, first, Hoover, and then by Roosevelt, to force an end to DE-flation and unemployment by running deficits and pushing the private economy to adapt to federal pressure. The federal government could borrow in the face of the human problems that bad economics had wrought.

Adopting the programs initiated by Hoover, FDR managed to keep the U. S., and much of the world, in depression until the Second World War broke out. Prior to the emergency legislation passed during the “Banking Holiday” of 1933, the 12 “Fed” Districts made policy on their own, enabling some to do severe damage in parts of the country while recovery was stumbling forward in others. Naturally, the preferred answers to the crisis were always based in more central control, essentially the story and the outcome of the “Great Depression.”

Until the Federal Reserve was created the U.S., like most industrial nations, was on “the gold standard.” United States Dollars represented a number of grains of 90% pure gold. That is, an ounce of “.9 fine” gold “cost” $20.67 and had since 1900. Never failing to take advantage of a crisis, 1930’s era leftists – FDR and the “brain trust” – used the banking and international gold crises to obtain emergency legislation making private ownership of gold coins, metal or bullion illegal! That is, everyone had to turn in his or her gold in exchange for $35.00 worth of U. S. “dollars” (actually, Federal reserve notes) that were now backed by so many grains of silver or by 60% as many grains of gold than prior to the seizure. It was pretty slick.

The federal government had acquired tons of gold for, in effect, next to nothing, but gold was now valued at $35 an ounce of .9 fine purity. Suddenly the government had a lot of money to spend in its attempts to correct the severe deflation and unemployment afflicting the U. S. and other industrialized nations. Most of it helped but did not solve the fundamental problems in the economy; it took a big war to do that.

We have got to give the federal government total control over our life, health and death decisions.

Where there is a name for schemes like Social Security (“Ponzi”), there isn’t a moniker for what happened to America between the two world wars, except, perhaps, “Progressivism,” not to be confused with “Progress.”

In a Constitutional Republic, “Progress” is measured first by how large a fraction of the population DOESN’T DEPEND ON GOVERNMENT for basic needs like housing, food, clothing, employment and health care. It’s also measured by the quality of citizenship, the honesty of jurisprudence, of police agencies and individuals, the clarity and even-handed enforceability of laws, the honesty of education and the level of cultural agreement by and amongst the vast majority of its citizenry.

The worst chicanery of all is the structure of the federal budget, which is barely a budget at all since it is about 75% “entitlements.” Congress has NEVER cut the budget, has never cut an “entitlement,” has never gotten rid of an “executive” department, has never paid down the national debt, at least in the past 60-odd years, has not failed to borrow from our great-great grandchildren for a like period, and has never audited the “Federal” Reserve. That’s because it’s.., well…, too busy. They are so busy on our behalf of course, and so tired from “fighting” for the middle class and “working” families who are non-working families to a significant degree, fighting to “improve education” and “leveling playing fields,” that there is barely enough time to begin to explain why what rational people think should be done simply can’t be done, unless they write a check for the campaign.

Mostly, they are too busy raising money for re-election, which is the number-one mission after a couple of years in office, and helping their real constituency: the congressmen and women and senators who sit nearby, because THEY can help in the fight for re-election more than any other group in the country.

We elect them, you and I, because their counterparts in the other party – pick one – are such scurrilous bastards and bitches that we have to keep “our” representative or senator in there so that we can continue the fight to “take back our country.” And a check for the campaign is not only vital, right at the moment you tear open your mailer, but may be multiplied up to FIVE times if your check is received by midnight 4 or 5 days hence.

Save yourself and the “campaign” even more, maximizing the value of your support, by using a (bank) interest-bearing credit-card to make your nation-saving donation!

Leftists are loathe to argue principles but they love to set the terms of public discussion. To effect that control they have to change the meaning of words… like “democracy,” for example. Where ”democracy” once meant a system of civic governance where the majority ruled – right or wrong – it now means “when Democrats rule… right or wrong.” So, when non-Democrats are in power, having been elected by a majority of votes, they are “threatening democracy.”

The United States is not organized as a “democracy.” It is a Constitutional Republic with democratically elected representatives and, interestingly, democratically elected executives, part of an extraordinarily well-designed system of dividing powers and constituencies to which each must answer. But power is vested in representatives of the citizenry who, the original theory is, are knowledgeable, honest and willing to sacrifice for their fellow citizens. That last is where the system breaks down. There no longer is any sacrifice! Right under our noses “our” representatives have turned the tables on us and we didn’t smell the odor!

Being an elected official, legislator or appointed officer in any of our states’ governments, the federal government, certainly, most cities and in virtually every public school system on up through state colleges and universities, is a very sweet deal – far more lucrative and secure than any “private” sector position, and with better benefits, more holidays and many “perks.” The “public servants” in today’s equation are you and me: taxpayers… and we don’t get free healthcare when WE retire.

“Representing” ignorant taxpayers is the best job many reps and senators will ever have: high pay, big benefits and almost no responsibility beyond re-election. Americans, themselves, should have it so good.

And, finally, for this chapter, the biggest scheme of all: that “debt” we looked at earlier. A “ponzi” scheme would seem a bad enough swindle for elected representatives to foist upon their “constituents,” but the worst is far, far greater, and so slick that Republicans are regularly denigrated for attempting to slow it – not STOP it, slow it – by just a few billions from time to time. Somehow, Democrats tell us, not going further and further into debt to pay the INTEREST-only on earlier debt, is tantamount to treason and threatens to “ruin the credit rating of the United States of America!” God save the Queen!

If you are seeking a way to judge the veracity, competence, integrity, legitimacy or sensibleness of ANY federal Congress-person, just consider the CURRENT national debt. You do know that it’s closing in on $21 TRILLION dollars, yes?

You do realize that it threatens our very economic existence? That it represents how far beyond our national means we have lived for the past 60 years? That it exemplifies the utter inability of our elected representatives (so far) to manage the budget for which they ARE responsible… and for which job they have earnestly sought our votes?

Do you recognize that unlike wars and other existential threats, since the “Great Society” kicked in, in 1968, every social discomfort has been labeled a “crisis,” confirmed by rigged congressional testimony, making raising the so-called “debt ceiling” every year an act of “courage” and of patriotism. Those 21 Trillion dollars are the proof that socialism will destroy our freedom. It is taking a long time because of the exceptional work ethics of Americans, but our economic destruction is a safe prediction, given that the history of the last 6 decades of representative government in our (ostensible) 2-party system is one of utter economic debauchery.

But then, there’s always Broward County.